Intel upsizes stock offering to $20 bln, shares down in premarket

Intel Corporation (NASDAQ:INTC) announced on Monday evening it had increased a planned stock offering to $20 billion from $15 billion, as the chipmaker cashes in on a major share recovery to build out more manufacturing capacity. 

Intel said the stock offering will be priced at $95 a share– a 6.5% discount to its close on Friday, before the company had disclosed the planned offering. The company offered 210.5 million shares of common stock, and granted underwriters of the offering a 30-day option to purchase up to 31.6 million additional shares. 

The chipmaker said the proceeds from the offering are expected to be about $19.7 billion, and will be used for general corporate purposes. 

Intel’s disclosure comes just hours after Bloomberg reported that the chipmaker planned to increase its offering. 

Intel’s stock has nearly tripled so far this year, as the company benefited from renewed optimism over its ongoing turnaround plan, which is also aimed at restoring its once dominant spot in the chipmaking industry. 

Its share price recovery had spurred heightened speculation that Intel would raise capital through share sales. 

Intel’s stock fell over 4% on Monday and rose 0.9% in aftermarket trade. 

Vahid Karaahmetovic contributed to this report.