Oracle plans to raise $20 billion to finance its growth, according to the US software and data center company. The fundraising is set to include $10 billion in new shares and a further $10 billion through bond sales.
Oracle said the proceeds could support its ongoing operations, including capital expenditure and dividend payments. The financing comes shortly after the company announced additional investment plans for artificial intelligence infrastructure.
Investors responded negatively to the plans. Oracle shares fell by more than 6% on Monday in New York, adding to pressure caused by the company’s recent large-scale issuance of shares and bonds to fund data centers.
Oracle expects the AI boom to drive strong growth in the coming years. The company said this growth should become self-financing from the 2028/29 fiscal year, reducing its reliance on equity and debt markets.
Last week, Oracle said it planned to raise only $20 billion from financial markets for growth financing through mid-2030. The company’s shares have lost roughly half their value over the past year as concerns about its high debt and financing needs have weighed on the stock.
Sources: Handelsblatt.