Meta's $25 billion stock issuance was ultimately oversubscribed by about 5 times

According to informed sources, the expanded $25 billion stock issuance by Meta Platforms (META.O) received approximately five times the demand for the available shares. The company plans to raise $98 billion for expenditures in the field of artificial intelligence.

Informed sources indicated that more than half of the shares in this common stock issuance were allocated to long-term investors and existing shareholders. Among them, the top 15 investors by subscription size collectively received about 70% of the issued shares. The issuance was priced at $625 per share, which is a 2.7% discount compared to the closing price last Friday before the issuance announcement.

On Tuesday, Meta's stock price fell by 1.4% at one point in the New York market, reaching $621.47 per share. This stock issuance is just part of Meta's financing plan. The plan also includes the issuance of $12.5 billion in mandatory convertible preferred stock, as well as a planned market-priced stock issuance. If the final fundraising amount reaches $98 billion, it will become one of the largest equity financing plans in history.