Key Moments
- Intel Corporation (NASDAQ:INTC) increased its planned stock offering size to $20 billion from $15 billion.
- The offering is priced at $95 per share, a 6.5% discount to Intel’s Friday closing price before the deal was disclosed.
- Intel expects approximately $19.7 billion in proceeds, earmarked for general corporate purposes, as shares traded lower in premarket activity.
Upsized Equity Offering Details
Intel Corporation (NASDAQ:INTC) said on Monday evening that it has boosted the size of its previously planned stock offering to $20 billion, up from $15 billion. The move comes as the company seeks to leverage a strong rebound in its share price to support expanded manufacturing capacity.
The chipmaker set the offering price at $95 per share, representing a 6.5% discount to its closing level on Friday, prior to the public disclosure of the transaction. Intel is offering 210.5 million shares of common stock and has provided underwriters with a 30-day option to buy up to an additional 31.6 million shares.
The company indicated that it expects to generate roughly $19.7 billion in proceeds from the sale, which will be allocated to general corporate purposes.
| Offering Component | Detail |
|---|---|
| Total offering size | $20 billion |
| Offering price per share | $95 |
| Discount to Friday close | 6.5% |
| Primary shares offered | 210.5 million |
| Underwriters’ 30-day option | Up to 31.6 million additional shares |
| Expected proceeds | Approximately $19.7 billion |
Market Reaction and Trading Performance
Intel shares were down about 1% in premarket trading on Tuesday as of 04:18 ET, after finishing Monday’s session 4% lower. The stock fell over 4% on Monday and then gained 0.9% in aftermarket trading.
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