Intel raises US$20 billion from upsized share sale
Intel priced the offering at US$95 per share, a discount of 2.6% from the previous close
Intel has raised US$20 billion by offering more of its shares on Tuesday (Aug 11), as the company aims to fund the expansion of its chip contract manufacturing business. The stock sale took place at US$95 per share, a 2.6% discount from the previous close. Intel had initially planned to raise US$15 billion through the offering. Shares of the chipmaker fell over 4% on Monday, but have nearly tripled so far in 2023, outperforming rivals AMD and Nvidia and the Philadelphia Semiconductor Index's 75% rise.
Analysts believe the stock's surge has increased the chances of this equity raise to support Intel's expansion plans. Intel's CEO, Brian Krzanich, announced the company's intention to spend US$20 billion on capital expenditure this year, up from the previous forecast of US$18 billion. The company is investing heavily in new facilities and advanced packaging capabilities to challenge industry leaders like TSMC in contract chip manufacturing.
Intel has also signed contracts with Tesla and Apple for its 14A manufacturing process, though neither company has confirmed the Apple deal.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
