Intel (INTC) Stock Drops 4% as $20B Offering Catches Market Off Guard
TLDR
- Intel upsized its stock offering from $15 billion to $20 billion
- Priced at $95 per share, a 6.5% discount to Fridayโs close
- 210.5 million shares issued, with underwriters able to buy 31.6 million more
- Proceeds of around $19.7 billion earmarked for general corporate purposes
- INTC fell 4% Monday and was down around 1% in premarket Tuesday
Intel is raising $20 billion through a stock offering, upsizing from an originally planned $15 billion. The chipmaker priced the deal at $95 a share, a 6.5% discount to its Friday closing price.
The company will issue 210.5 million shares of common stock. Underwriters were also granted a 30-day option to purchase up to an additional 31.6 million shares.
Net proceeds from the offering are expected to come in at around $19.7 billion. Intel said the funds will be used for general corporate purposes.
INTC fell 4.1% to close at $97.52 on Monday when the offering was first disclosed. The stock was trading down around 1% in premarket Tuesday.
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