Oracle prices $20 billion of new stock and bonds as it funds its AI infrastructure buildout
Oracle sold 86,206,897 shares at $116 and $10 billion of notes due 2029 to 2046, with net proceeds of about $9.9 billion and $10.0 billion; the deals are expected to close on November 4.
Why it matters
Oracle is raising equity and debt at the same time to pay for the data centres behind its AI cloud contracts, and the share sale was priced at an 11.2% discount to Friday's close, according to InvestorsHub on Yahoo Finance. The shares fell 8.8% to $119.22 on Monday, leaving them down about 39% this year. The raise lands as investors question how much AI capex the largest cloud providers can fund. Watch the November 4 closing and whether other hyperscalers follow with equity.
Key facts
- 86,206,897 shares at $116.00
- $10 billion of notes in five tranches, 2029 to 2046
- Net proceeds about $9.9 billion (stock) and $10.0 billion (notes)
- Expected to close November 4, 2026
- BofA Securities is sole global coordinator
- Shares fell 8.8% to $119.22 on Monday