Meta’s $25 Billion Stock Sale Ended Five Times Oversubscribed

Meta Platforms Inc.’s upsized $25 billion share sale attracted demand for about five times the available shares, according to people familiar with the offering, as the company seeks to raise $98 billion for its AI spending.

More than half of the shares in the common stock offering were allocated to long-only and existing investors, said the people, who asked not to be identified because the information is private. The investors taking the 15 largest stakes in the offering accounted for about 70% of the shares, the people said.

The offering priced at $625 per share, a 2.7% discount to Friday’s closing price before the offering was announced. Meta shares fell as much as 1.4% to $621.47 each on Tuesday in New York.

Meta’s stock sale represents one component of the plan, which also includes a $12.5 billion offering of mandatory convertible preferred stock and an expected at-the-market share program. At $98 billion, it would be one of the largest equity financing plans in history.

Read More: Meta Increases Equity Offering Target to Almost $98 Billion

The company pledged to devote the new funds to AI infrastructure and personal superintelligence. It has unveiled a personal AI agent known as Muse, and an AI model called Muse Wonder which leadership says is on par with OpenAI’s ChatGPT and Anthropic PBC’s Claude in terms of tasks such as coding.

The mandatory convertible preferred stock offering was also multiple times oversubscribed, the people said. A spokesperson for Meta didn’t immediately respond to a request for comment.

Morgan Stanley and Goldman Sachs Group Inc. worked on the offering.

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