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Intel Raises $20 Billion From New Stock Sale
['Ronald Bwire']
TechMoran
Intel is raising $20 billion through a new stock offering, giving the US chipmaker a major injection of fresh capital as it continues to invest in its business.
The company expects to receive approximately $19.7 billion in net proceeds, assuming the underwriters do not exercise an option to purchase additional shares.
The underwriters have a 30-day option to purchase up to 31,578,947 additional Intel shares at the $95 offering price, less underwriting discounts.
The stock sale will increase the number of Intel shares in circulation, meaning existing shareholders will own a smaller percentage of the company once the new shares are issued.
The $20 billion fundraising gives the company additional financial resources for capital spending, working capital and other corporate purposes.