Intel Corp. is increasing its common stock offering to approximately $20 billion, a third more than its initial target, after investor demand for the new shares surpassed $100 billion.
The offering is expected to price at or above $95 per share, a 6.5 percent discount to Intel's closing price Friday. The company could expand the sale further if an over-allotment option is exercised.
Intel needs the capital to fund expanded foundry operations, a priority for Chief Executive Officer Lip-Bu Tan. The company recently raised its capital expenditure forecast to $20 billion from $18 billion.
Tan has worked to strengthen Intel's balance sheet, drawing investment from the U.S. government and competitors including Nvidia Corp. The equity sale is another step in that effort.
The offering ranks among the largest in the United States this year, driven by heavy spending on artificial intelligence infrastructure. Alphabet Inc. plans to raise up to $85 billion through equity offerings, and Oracle Corp. has a $20 billion at-the-market share sale program.
JPMorgan Chase & Co. Goldman Sachs Group Inc. Morgan Stanley and Citigroup Inc. are managing the offering.
Intel shares fell 4.1 percent Monday during regular trading after the sale was announced, then held steady in after-hours trading. The stock has still gained approximately 164 percent this year.
Existing shareholders face dilution from the new issuance, though the offering's oversubscription signals confidence in Intel's growth strategy. Deliberations are ongoing and details could change.
