Intel Plans $15 Billion Stock Sale to Fund Chip Manufacturing Expansion

Key facts

• Intel plans to raise $15 billion through a sale of common stock.
• The funds will support the expansion of its chip contract manufacturing business.
• Intel's stock has more than doubled in value this year.
• Shares fell over 3% in premarket trading due to potential shareholder dilution concerns.
• Underwriters have a 30-day option to purchase up to an additional $2.25 billion worth of shares.

Intel is planning to raise $15 billion through a sale of its common stock to fund the costly build-out of its chip contract manufacturing business. The U.S. chipmaker is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leaders like TSMC in contract chip manufacturing.

Despite its shares more than doubling this year, outperforming rivals, Intel's stock fell more than 3% in premarket trading. This decline is likely attributed to concerns about shareholder dilution resulting from the stock sale. The company has granted underwriters a 30-day option to purchase up to an additional $2.25 billion worth of shares at the offer price, minus discounts.

JPMorgan Securities, Goldman Sachs, Morgan Stanley, and Citigroup Global Markets are serving as joint book-running managers for the offering.