$35B Raise Priced: Meta Upsizes Common Stock Sale to $25B at $625/Share
META sits 21% above its 52-week low of $520.26.
Summary
Meta locked in terms on its previously announced concurrent offerings: 250 million depositary shares at $50 each (6.50% mandatory convertible preferred, ~$12.5B net) and $25.0B of Class A common stock at $625.00 a share, upsized from the $22.5B floated on October 26, part of an upsized $37.5B stock and depositary share offering. The common stock is sold through forward sale agreements with Morgan Stanley and Goldman Sachs covering 40 million shares at an initial forward price of about $622.92; Meta gets no cash upfront and expects roughly $24.9B on settlement by November 19, 2027. Both deals close October 29, and the preferred converts mandatorily around August 15, 2029 into Class A or Class C shares once the Class C dividend is effective. The $625 common price is a modest discount to the $632 market price, and the preferred carries a 6.50% coupon — a real cost of capital for a company funding an AI buildout that also plans a ~$60B at-the-market program. Watch the October 29 closings and whether underwriters exercise the over-allotments ($3.75B common, 37.5M depositary shares).
At the time of this announcement, META was trading at $632.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.6T. The 52-week trading range was $520.26 to $779.82. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: PR Newswire.