Intel increased its planned stock offering to $20 billion from $15 billion and priced the sale at $95 a share, a 6.5% discount to Friday's close. The chipmaker expects to net about $19.7 billion, which it plans to use for general corporate purposes.
Intel Corporation disclosed Monday evening that it had increased a planned stock offering to $20 billion from $15 billion, as the chipmaker moves to capitalize on a sharp share price recovery. The offering priced at $95 a share, a 6.5% discount to Intel's close on Friday, before the expanded size was disclosed.
Bloomberg reported the move first
Intel's announcement came just hours after Bloomberg reported that the chipmaker planned to increase its offering. The company offered 210.5 million shares of common stock. Intel also granted underwriters a 30-day option to purchase up to 31.6 million additional shares.
Net proceeds are expected to be about $19.7 billion, assuming underwriters do not exercise their option. Intel said the money will go toward general corporate purposes. The offering is expected to close on Wednesday, subject to customary closing conditions.
Stock nearly triples on turnaround optimism
Intel's stock has nearly tripled so far this year, as the company benefited from renewed optimism over its ongoing turnaround plan, which also aims at restoring its once-dominant spot in the chipmaking industry. That recovery had spurred heightened speculation that Intel would raise capital through a share sale, and Monday's pricing follows through on it.
Shares fell more than 4% on Monday and rose 0.9% in aftermarket trade after the offering was disclosed. J.P. Morgan, Goldman Sachs, Morgan Stanley and Citigroup are acting as joint book-running managers of the offering, alongside a group of other banks serving as book-running and co-managers. Intel filed a registration statement on Form S-3 with the Securities and Exchange Commission for the sale.
Sources: Investing.com, Investing.com
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