Intel is reportedly seeking to increase the size of its stock offering to around $20 billion from the $15 billion it originally planned, a rise of roughly one-third. According to Bloomberg, sources familiar with the matter said the shares could be priced at $95 or above, translating to a discount of about 6.5% from Friday's closing level. Investor appetite appears strong, with subscription demand already exceeding $100 billion. If underwriters exercise their over-allotment rights, the final amount raised could significantly surpass $20 billion, though discussions are still ongoing and terms could change. JPMorgan, Goldman Sachs, Morgan Stanley and Citigroup are involved in the offering. Intel's stock fell 4.1% in regular trading Monday and was little changed after hours, yet is still up roughly 164% year-to-date. Bloomberg also highlighted that this year's biggest U.S. equity raises have mostly come from companies benefiting from AI spending. Alphabet is raising up to $85 billion through market offerings and equity-linked deals, while Oracle plans to raise $20 billion via a market offering.
Intel Reportedly Set to Raise Stock Offering to About $20 Billion
Intel is seeking to expand its latest stock offering from $15 billion to roughly $20 billion, according to people familiar with the matter, Bloomberg reported on Aug. 11. That would be an increase of about one-third compared with the earlier target.
Shares are expected to be priced at $95 or more each, a discount of about 6.5% to Friday's close. The offering has already drawn more than $100 billion in subscription demand, the people said.
Over-allotment option and underwriters
Should underwriters exercise their over-allotment rights, final proceeds could clearly exceed $20 billion. That said, discussions are ongoing and the size and pricing could still change.
JPMorgan, Goldman Sachs, Morgan Stanley and Citigroup are all working on the deal.
Stock performance and broader fundraising backdrop
Intel fell 4.1% in regular trading on Monday, with shares roughly flat after hours. The stock remains up about 164% year to date.
Bloomberg noted that the biggest U.S. equity raises this year have largely been carried out by companies benefiting from AI spending. Alphabet is raising up to $85 billion through market offerings and equity-linked deals, while Oracle plans a $20 billion market offering.
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