Oracle plans $20bn fundraising as shares fall 6.2%

Oracle (NYSE:ORCL) shares fell 6.2% to $122.61 in early trading on Monday after the company disclosed plans to raise $20 billion through stock and bond offerings to support its financial and investment requirements.

The decline took the shares to their lowest level in more than three months, extending their year-to-date losses to approximately 37% as investors assessed the company's growing financing requirements.

Regulatory filings show Oracle plans to raise $10 billion through an equity offering and another $10 billion through a bond sale, bringing its proposed fundraising to $20 billion.

The company intends to use the net proceeds for general corporate purposes, including capital expenditure, debt repayment, acquisitions, cash dividends and share repurchases.

Oracle shares were down 6.2% at $122.61 in early trading following the fundraising announcement, while the company previously said it would limit additional AI financing to $20 billion through fiscal 2030.

As of August 31, Oracle had $125.34 billion in notes payable and other borrowings, while investors have scrutinised its AI infrastructure spending and financial exposure to OpenAI.

Oracle operates cloud computing, enterprise software and database businesses, and has increased investment in data centres and computing infrastructure to support demand for artificial intelligence services.