Intel is planning to raise $15 billion through a share sale, the U.S. chipmaker said on Monday as it looks to fund the costly build-out of its chip contract manufacturing business by cashing in on a stock surge fueled by its turnaround efforts.
Once the dominant force in the global chip industry, Intel is investing heavily in new facilities and advanced packaging capabilities as it seeks to challenge industry leader such as TSMC in contract chip manufacturing.
Its shares fell more than 3% in premarket trading, likely on concerns about shareholder dilution from the stock sale. The shares have more than doubled this year, outperforming rivals.
Intel plans to give underwriters a 30-day option to buy up to $2.25 billion worth of additional shares at the offer price, minus discounts.
JPMorgan Securities, Goldman Sachs, Morgan Stanley and Citigroup Global Markets are joint book-running managers. - Reuters
