Intel INTC rose 3.54% intraday after a prospectus supplement disclosed that Chief Executive Lip-Bu Tan and a family member will purchase $12 million of shares in the company's common stock offering at the public offering price. The offering closes today.
Intel priced 210,526,315 shares at $95 on Tuesday, upsizing the deal to $20 billion from the $15 billion announced a day earlier, with underwriters holding a 30-day option on a further 31,578,947 shares. Net proceeds run to roughly $19.7 billion, earmarked for capital expenditure and general corporate purposes. The share count amounts to close to 5% dilution.
The raise follows a quarter in which Intel posted second-quarter revenue of $16.1 billion, up 25%, its fastest growth in nearly 15 years, and lifted capital expenditure guidance to $20 billion.
