Intel raises stock offering to USD 20 billion from USD 15 billion announced earlier
New Delhi, August 11
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.
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
Reader Comments
USD 20 billion is a massive bet. But at $95 per share, it feels like they're selling at a bit of a discount. The company must be preparing for something big — maybe their foundry expansion or AI chip push. Let's see how this plays out for global chip prices.
This is good news for the semiconductor ecosystem globally. But India should take note — we still rely heavily on imported chips. If Intel is raising funds for capex, the government should push harder to attract some of that investment into India's chip manufacturing plans. We can't just be a consumer market forever.
At $95 per share, Intel is raising a huge war chest. But as a consumer, I wonder if this means chip prices will go up in India? Our laptops are already so expensive compared to other regions. Happy to see the company interested in growth, but worried about the cost impact here.
Doesn't this mean existing shareholders get diluted? That's a bit concerning. I have some Intel stocks and not sure how this affects long-term value. But for the tech sector, this kind of aggressive fundraising can signal confidence in future growth. Mixed feelings here!
The move makes sense — Intel has to compete with TSMC and Samsung in the foundry space. Raising $20 billion now could be a strategic masterstroke. But I wish the company would be more transparent about exactly where this money is going. Vague "general corporate purposes" isn't very reassuring.
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