Intel is said to near share sale upsize to raise $20 billion

Intel Corp. is planning to increase the scale of its recent $20 billion share sale, according to sources familiar with the matter. This is a 33% rise from the initial target set when the deal was announced on Monday. The company is rumored to be pricing the offering at $95 per share or higher, which would be a 6.5% discount compared to Friday's closing price, based on Bloomberg's calculations.

The share sale may expand beyond the $20 billion mark if an over-allotment option is utilized, as one source indicated. The demand for the share sale has surpassed $100 billion, reports stated. The discussions surrounding the deal are still in progress, and details such as the size and pricing might still undergo modifications, sources said.

Intel's spokesperson did not provide any comments on the matter. Major financial institutions, including JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, and Citigroup Inc., are involved in the offering. The deal has attracted significant investor interest, as it is significantly oversubscribed, according to Bloomberg News.

Intel's shares experienced minimal change in after-hours trading following a 4.1% decline during regular market hours on Monday. However, they are currently up around 164% this year, following CEO Lip-Bu Tan's focus on improving Intel's financial situation. The company has sought outside investments from sources such as the U.S. government and industry rivals like Nvidia Corp. Among the largest U.S. equity offerings this year, Intel's share sale stands out due to its involvement in the artificial intelligence spending boom.

Alphabet Inc. is also actively raising funds, aiming for up to $85 billion through various equity offerings. Oracle Corp. plans to raise $20 billion through a similar at-the-market share sale program.