The Zhitong Finance App learned that according to people familiar with the matter, Oracle (ORCL.US) is close to pricing the $10 billion stock offering, which is 11% off the market price. Previously, during the first volatile trading day of the week, the company's stock price suffered a setback. The company expects to price the offering at $116 per share, according to people familiar with the matter. At this level, the pricing is discounted from last Friday's closing price of $130.67 before the deal was announced.
People familiar with the matter said discussions are still ongoing, and details, including distribution scale and pricing, may still change. According to reports, prior to this stock offering, the company had already issued $10 billion in bonds on Monday, divided into five tiers with terms ranging from 3 to 20 years.
According to the filing documents, Bank of America also led this stock issuance and bond issuance transaction. Representatives for Oracle and Bank of America did not immediately respond to requests for comment.
Oracle has raised billions of dollars by selling shares this year to further diversify its sources of capital to fund huge AI-related expenses. The background of this fundraising competition is that Anthropic PBC is preparing a potentially record initial public offering (IPO), and previously Intel (INTC.US), Alphabet (GOOGL.US), and Meta Platforms (META.US) have completed large-scale stock offerings.
According to reports, after confidential promotions were made to some existing investors, sovereign wealth funds, and long-only investors, the subscription demand for the latest offering before pricing was much higher than the scale of its planned fundraising.