Oracle Completes $20B AI Fundraise With New Share Offering at $116 per Share

Oracle has concluded a $20B fundraise to finance its cloud expansion by pricing the sale of 86.2 million new shares at $116 each. The equity offering, which represented an 11% discount to the stock's price as of Nov. 1, was paired with a $10B issuance of senior notes. The bond offering consisted of five tranches with coupon rates ranging from 7% for notes due 2029 to 8.65% for notes due 2046.

The combined capital raise matches the total amount of additional financing Oracle told investors last week it would restrict through fiscal 2030. The company plans to use the proceeds for general corporate purposes and capital expenditures to build out AI infrastructure for customers like Meta and OpenAI. The news drove Oracle shares down by as much as 9% on Monday as shareholders reacted to the dilution and the company's BBB-minus credit rating from S&P, while the business carried roughly $236.1B in consolidated debt as of Aug. 31.