Intel, the American semiconductor company, is preparing for a capital increase that may exceed $20 billion (approximately 28.27 trillion won), more than one-third larger than initially planned, according to a report by Bloomberg on August 10, citing sources.
Reports indicate that Intel is planning the offering price at $95 per share or higher. If set at $95, this would be about 2.6% lower than Intel's closing price of $97.52 on the New York Stock Exchange that day.
One source noted that demand has already surpassed $100 billion (approximately 141 trillion won), suggesting that if the overallotment option (greenshoe option) is exercised, the capital increase could significantly exceed $20 billion. The overallotment option allows for additional shares to be issued if the stock price significantly exceeds the offering price after the public offering or capital increase, helping to stabilize the stock price.
This represents an increase of more than one-third from Intel's previously announced capital increase of $15 billion. However, sources indicated that discussions regarding the expansion of the capital increase are ongoing, and the specific size and offering price may change.
Previously, Intel announced plans to raise $15 billion through the capital increase, with the potential to issue an additional $2.25 billion, bringing the total amount raised to as much as $17.25 billion.
The funds raised will be used for investments in semiconductor production facilities and equipment, as well as for company operations. Intel stated, “As investments related to AI are rapidly increasing, demand for semiconductors remains strong,” highlighting new growth opportunities in AI applications for robotics and autonomous driving, custom semiconductors, advanced packaging, and semiconductor production for external customers.
Intel is also increasing its investment scale. Last month, it raised its capital expenditure forecast for the year from $18 billion (approximately 25.5 trillion won) to $20 billion (approximately 28.4 trillion won). The company plans to expand investments in production facilities and equipment to meet the demand for AI server semiconductors while growing its foundry business.
However, concerns have arisen that the capital increase may dilute the value of existing shareholders' stakes, leading to a 4.06% drop in Intel's stock price, which closed at $97.52.
* This article has been translated by AI.
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