Oracle Plans to Sell $10B in New Shares at 11% Discount

The software giant is seeking new capital through a series of public offerings to fund the expanding costs of its data center infrastructure. To raise the necessary cash, the company is in the process of selling $10 billion in common stock, which reports indicate will be priced at a discount of roughly 11% to the current share price. This equity sale is paired with a separate $10 billion issuance of unsecured bonds, totaling $20 billion in fresh financing for general corporate purposes and AI related capital expenditure.

Oracle shares fell about 9% to $119 on Monday as investors reacted to the potential dilution of the new shares and the company's leverage, which S&P Global Ratings currently rates as BBB-minus. The total fundraising amount effectively exhausts the limit on additional outside financing the company told investors last week it would restrict through fiscal year 2030. Despite the stock's decline, the $10 billion bond offering reportedly saw excess demand from credit markets.