Intel is said to near share sale upsize to raise $20 billion
The chipmaker is poised to price the offering at around $95 per share or above — a third more than it was targeting when it announced the deal Monday morning.
Intel Corp. is seeking to increase the amount it’s raising in a share sale to about $20 billion, according to people familiar with the matter, a third more than it was targeting when it announced the deal Monday morning.
The chipmaker is poised to price the offering at around $95 per share or above, the people said, asking not to be identified as the information isn’t public. At that level, the pricing would represent a discount of 6.5% to Friday’s closing price, according to Bloomberg calculations.
The offering could increase to well over $20 billion if a so-called over-allotment option is exercised, one of the people said. The share sale has drawn more than $100 billion in demand, they said.
Deliberations are ongoing and details including the size and pricing could still change, the people said. A spokesperson for Intel declined to comment.
JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. are working on the offering, according to a statement earlier. The deal is multiple times oversubscribed, Bloomberg News reported.
Intel’s shares were little changed in after-hours trading after falling 4.1% on Monday during normal market hours. They remain up roughly 164% this year, after Chief Executive Officer Lip-Bu Tan made cleaning up Intel’s finances a priority. The effort has included attracting outside investments from the U.S. government and even chip rivals such as Nvidia Corp.
The year’s biggest U.S. equity offerings have been dominated by companies riding the boom in artificial intelligence spending. Alphabet Inc. is in the process of raising as much as $85 billion through equity offerings, including so-called at-the-market share sales and equity-linked deals. And Oracle Corp.’s fundraising plans include a $20 billion at-the-market share sale program.