Intel Corporation announced on Monday evening that it had increased its planned stock offering to $20 billion, up from the previous target of $15 billion.
The move comes as the chipmaker looks to take advantage of a strong recovery in its share price. Intel plans to use the capital to support its broader business needs, including efforts to expand manufacturing capacity.
Intel Prices Offering at $95 Per Share
Intel said the offering will be priced at $95 per share. That represents a 6.5% discount to the company’s closing price on Friday, before the planned offering was announced.
The company is offering 210.5 million common shares. It has also given underwriters a 30-day option to buy up to 31.6 million additional shares.
Proceeds Expected to Reach $19.7 Billion
Intel expects to raise around $19.7 billion from the offering.
The company said the proceeds will be used for general corporate purposes. This could help Intel strengthen its financial position as it continues investing in its turnaround strategy and manufacturing ambitions.
Intel Shares Fall Before the Open
Intel shares were down around 1% in premarket trading on Tuesday as of 04:18 ET.
The stock had already closed more than 4% lower on Monday, after investors reacted to the planned share sale. However, shares later rose 0.9% in aftermarket trading.
Bloomberg Reported the Larger Offering Earlier
Intel’s announcement came only hours after Bloomberg reported that the company was preparing to increase the size of its stock offering.
The move had been widely watched by investors, especially after Intel’s sharp rally earlier this year.
Intel Stock Has Nearly Tripled This Year
Intel shares have nearly tripled so far this year.
The rally has been driven by renewed optimism around the company’s turnaround plan. Investors have been watching whether Intel can regain strength in the semiconductor industry and rebuild its position as a leading chipmaker.
Share Recovery Sparks Capital Raise Speculation
Intel’s strong stock rebound had already fueled speculation that the company could raise capital through a share sale.
By expanding the offering to $20 billion, Intel is using its higher share price to raise a large amount of cash. However, the move also creates concerns about shareholder dilution, which may explain the pressure on the stock.
Intel’s Turnaround Remains in Focus
The larger offering gives Intel more financial flexibility as it continues its recovery plan.
Still, investors will be watching closely to see how effectively the company uses the new capital. The key question is whether Intel can turn the money raised into stronger manufacturing capacity, better competitiveness, and long-term growth.
