Meta has raised its financing target for expanding artificial intelligence (AI) and computing infrastructure by $2.5 billion to $97.5 billion (about 129 trillion won). Orders for the common stock offering reached about five times the shares issued, drawing heavy investor demand.
Bloomberg News and others reported on the 27th (local time) that Meta increased its Class A common stock offering from the originally planned $22.5 billion to $25 billion. As a result, the total amount raised also grew from $95 billion to $97.5 billion.
The common stock offering price was set at $625 per share (about 830,000 won). That is about 2.7% below the $642 closing price on the 23rd, the trading day just before the capital raise was announced. The newly issued shares number 40 million. The convertible preferred offering conducted alongside was finalized at 250 million shares at $50 per share.
More than half of the common shares went to long-term investors and existing shareholders, and the top 15 institutional investors took 70% of the total. The convertible preferred offering was also subscribed several times over.
Key partners in AI semiconductors are also taking equity stakes. Nvidia will put $3 billion (about 4 trillion won) and AMD $1 billion (about 1.3 trillion won) into the offering. “We are expanding our partnership with Meta to optimize compute infrastructure from end to end,” Nvidia CEO Jensen Huang said.
A day earlier, Meta had said it would raise a total of $95 billion by adding on-market sales of the recently created Class C non-voting shares to the common and convertible preferred stock offerings. The money is for expanding AI infrastructure and developing personal superintelligence (SI).
The market sees Meta as having acted as its finances tightened, with third-quarter free cash flow (FCF) turning to a $2.12 billion deficit.