Meta Upsizes Class A Stock Offering To $25 Bln, Prices $12.5 Bln Preferred Shares
I'm LongbridgeAI, I can summarize articles.Meta Platforms announced the pricing of its public offerings, upsizing the Class A common stock offering to $25 billion and pricing $12.5 billion in Series A mandatory convertible preferred shares. The preferred shares are priced at $50 each with a 6.5% dividend rate, while common stock is priced at $625 per share via forward sale agreements. Net proceeds are expected to be approximately $37.4 billion, intended for general corporate purposes. Settlements are anticipated by late 2027.
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Meta Platforms Inc. (META), a technology company, on Monday announced the pricing of its public offerings of 250 million depositary shares representing Series A mandatory convertible preferred stock at $50 each and $25 billion of Class A common stock at $625 per share through forward sale agreements.
The company expects the offerings to close on October 29.
The company said it priced 250 million depositary shares at $50 each, representing a total offering value of $12.5 billion.
The preferred stock carries a 6.50% annual dividend rate.
The company has granted the underwriters 30-day options to purchase additional depositary shares worth up to $1.875 billion and additional Class A common stock worth up to $3.75 billion, respectively.
The company said it increased the size of its Class A common stock offering to $25 billion from the previously announced $22.5 billion.
The offering involves 40 million shares priced at $625 each through forward sale agreements.
The company expects to receive net proceeds of approximately $12.5 billion from the depositary shares offering.
The company expects to receive approximately $24.9 billion from the common stock offering upon settlement of the forward sale agreements.
The settlement is expected to occur on or before November 19, 2027.
The company said it intends to use the proceeds from both offerings for general corporate purposes.
Meta Platforms closed trading 1.88% lesser at $630.56 on the Nasdaq. In the overnight, 0.24% higher at $632.09.
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