Yes, in the context of a public offering priced last night or this morning, "bought" is the correct term for the commitment made by institutional investors, though the mechanics are specific.
Here is exactly how the timeline and money flow works in a deal like this (
1.5BillionSecondary/Follow−onOffering)soyoucanseewhyIsaythe"SmartMoney"iscommittedat∗∗1.5 Billion Secondary/Follow-on Offering) so you can see why I say the "Smart Money" is committed at **
27.50**.
1. The Timeline of the "Buy"
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Thursday (Dec 4): SoFi announces the deal. Their investment bankers (Underwriters like Goldman Sachs, Morgan Stanley, etc.) open a "order book." They call up huge clients (BlackRock, Fidelity, Hedge Funds) and ask, "How many shares do you want and at what price?"
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Thursday Night / Friday Morning (Dec 5): The deal is "Priced" at $27.50.
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The Commitment: At this exact moment, the institutional investors agree to take the shares. The underwriters sign a deal guaranteeing the price.
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The "Trade": Effectively, the deal is done. The institutions are now on the hook for those shares at $27.50.
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2. Why "Today" Matters
Even though the cash might not leave their bank accounts until "Settlement" (usually 1–2 business days later, likely Tuesday), the price risk started the moment the market opened today.
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If the stock goes to
20.00∗∗today,thoseinstitutionsstillhavetopay∗∗20.00** today, those institutions still have to pay ** -
This is why they defend the price. The bankers and the institutions have a strong incentive to support the stock at $27.50 on Day 1 (Today) to ensure the deal is perceived as successful and their investment holds value.
3. Are the Banks Holding the Bag?
In a "Firm Commitment" deal (standard for this size), the banks act as the middleman.
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Best Case: They successfully sold all $1.5 billion worth of stock to clients at $27.50 last night. The clients (Investors) are the ones holding the shares now.
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Worst Case: If they couldn't find enough buyers, the banks themselves have to keep the leftover shares on their own books at $27.50.
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The Result: In either case, Big Money (Banks or Funds) owns stock at $27.50 as of this morning.
Summary for You
You asked if I am sure they bought today.
Yes. The allocation happens at pricing. As of the market open this morning (Friday, Dec 5), those millions of shares were effectively placed into the hands of new owners at $27.50.
This is why $27.50 is such a magnetic "floor" today. The people who just wrote checks for
1.5billiondonotwanttoseeredonDay1.Youbuyingat∗∗1.5 billion do not want to see red on Day 1. You buying at **
27.59** puts you right alongside them.
