BUZZ - Oracle shares plummet after selling $20 billions in stocks and bonds to fund its AI program

November 3 - ** Software giant Oracle (ORCL.N) saw its share price fall 1.5% to $117.44 in pre-market trading on Tuesday after finalizing a $20 billion financing plan to support the expansion of its artificial intelligence business.

** On Monday evening, the company sold about 86.2 million shares at $116 per share (link) and issued five tranches of bonds totaling $10 billion.

** On Monday, ORCL shares plunged 8.8% to close at $119.22 after the company announced (link) that it would carry out multiple financings simultaneously. The funds will be used for general corporate purposes, including capital expenditures, debt repayment, acquisitions, cash dividends, and share repurchases.

** Last week, ORCL said it expects capital expenditures to peak this fiscal year and next (link) and stated that it will not raise more than $20 billion in additional AI-related financing before fiscal year 2030.

** Following this equity issuance, the Austin, Texas-based company will have about 3.1 billion shares outstanding.

** Bank of America (BofA) served as the global coordinator and joint bookrunner for both offerings. Other participating institutions included Wells Fargo, Citigroup, BNP Paribas, Deutsche Bank, and JPMorgan.

** As of Monday’s close, Oracle (ORCL) shares had fallen about 39% year-to-date.

** According to data from the London Stock Exchange Group (LSEG), the average rating of 41 analysts is "buy," with a median target price of $240.

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