Business News | Intel Raises Stock Offering to USD 20 Billion from USD 15 Billion Announced Earlier
Get latest articles and stories on Business at LatestLY. Intel Corporation has increased the size of its previously announced public offering of common stock to USD 20 billion from USD 15 billion, as the chipmaker looks to raise funds for general corporate purposes, including capital expenditure and working capital.
New Delhi [India], August 11 (ANI): Intel Corporation has increased the size of its previously announced public offering of common stock to USD 20 billion from USD 15 billion, as the chipmaker looks to raise funds for general corporate purposes, including capital expenditure and working capital.
Intel said it has priced the underwritten public offering at USD 95 per share, with 210,526,315 shares of common stock being offered. The offering is expected to close on August 12, subject to customary closing conditions.
In an official statement on Tuesday, the company said "The offering was upsized to USD 20 billion from the previously announced offering size of USD 15 billion".
Intel said the offering is expected to generate approximately USD 19.7 billion in net proceeds, assuming the underwriters do not exercise their option to purchase additional shares.
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The net proceeds will be available for general corporate purposes, which may include capital expenditures and working capital.
The company has also granted the underwriters a 30-day option to purchase up to 31,578,947 additional shares at the public offering price of USD 95 per share, less underwriting discounts.
If the additional share option is exercised, Intel could raise further funds beyond the base USD 20 billion offering.
Intel said the proceeds from the stock sale will provide funding for its broader corporate requirements. However, the company did not specify individual projects or capital expenditure plans that the proceeds will be allocated to.
The offering is being led by J.P. Morgan, Goldman Sachs & Co. LLC, Morgan Stanley and Citigroup, which are acting as joint book-running managers.
Barclays, BofA Securities, BNP Paribas, Credit Agricole CIB, Deutsche Bank Securities, Mizuho, RBC Capital Markets, TD Securities, Wells Fargo Securities and Cantor are also acting as book-running managers.
Academy Securities, COMMERZBANK, PJT Partners, Blaylock Van, C.L. King & Associates and Ramirez & Co., Inc. are acting as co-managers.
The offering represents a significant equity fundraising by Intel, with the company increasing the planned size by USD 5 billion from its earlier announcement.
The company said the transaction remains subject to customary closing conditions and is expected to be completed on August 12. (ANI)
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