By Radarr Africa Business Desk
LAGOS, November 3 (Radarr Africa) – Oracle has launched an offering of $10 billion of new common stock alongside a separate $10 billion sale of senior notes, according to a preliminary prospectus supplement dated November 2, and its shares fell on Monday.
The filing shows that the final number of shares and the offering price had not been set. As an illustration, it assumes 76,528,659 shares sold at $130.67, which was Oracle’s closing price on October 30. The two offerings are separate. The notes are being sold under a different prospectus supplement, neither offering’s closing depends on the other, and the common stock ranks junior to the notes, according to the filing.
Oracle has not fixed the use of the proceeds. The filing says the net proceeds are to be used for general corporate purposes, which it lists as including capital expenditure, debt repayment, investments or acquisitions, and dividends or share repurchases.
BofA Securities is the global coordinator, joint book-running manager and sole representative of the underwriters. The other joint book-runners are Wells Fargo Securities, Citigroup, BNP Paribas, Deutsche Bank Securities and J.P. Morgan. PNC Capital Markets, BTIG, Goldman Sachs, HSBC, Lloyds Securities and SMBC Nikko are additional underwriters. Oracle has agreed not to issue more common stock for 60 days after the date of the supplement, with certain exceptions, the filing says. The date for delivery of the shares was left blank.
Investors sold the stock. Stock Titan reported that Oracle fell 8.76 per cent on Monday after announcing the plan to sell $10 billion of new common stock alongside a bond sale. TheStreet, in a report earlier in the session, put the fall at 4.99 per cent. Radarr Africa could not reconcile the two figures from the sources reviewed.
The move follows an earlier financing plan the company set out. StreetInsider reported that Oracle planned to raise $45 billion to $50 billion in gross cash proceeds during calendar year 2026 to expand Oracle Cloud Infrastructure capacity to meet contracted demand from customers including AMD, Meta, NVIDIA, OpenAI, TikTok and xAI. About half was to come from equity-linked and common equity, including mandatory convertible preferred securities and an at-the-market programme of up to $20 billion, and the other half from a single investment-grade senior unsecured bond issuance in early 2026, according to StreetInsider.
That plan included a statement that Oracle “does not expect to issue additional bonds during calendar year 2026” beyond the early-year offering, StreetInsider reported. The new $10 billion notes sale is separate from the share sale and was set out in its own prospectus supplement. StreetInsider’s article did not carry a publication date, and the filing reviewed by Radarr Africa did not say how the new notes relate to that earlier statement.
The plan was approved by Oracle’s board, with Goldman Sachs leading the bond offering and Citigroup leading the at-the-market and mandatory convertible preferred offerings, according to StreetInsider, and the company said it supported its investment-grade rating and balance sheet strength.
The share sale was one of several corporate finance items that moved the market on Monday. TheStreet reported that Marvell agreed to buy Lumentum and that Apple reported results after the close. US stocks finished mixed, with the S&P 500 down 0.51 per cent and the Nasdaq down 1.07 per cent, according to TheStreet.
