Oracle Taps Investors for US$20bil: Stocks to Monitor

Quick Answer: Oracle plans to raise US$20 billion through bond and share sales to fund its AI and cloud infrastructure build-out, regulatory filings showed. Shares fell 8.8% to US$119.22, and the share sale is expected to be priced at US$116. For shareholders, the new shares add dilution risk on top of a debt load of US$125.34 billion, making ORCL worth monitoring.

Oracle plans to raise US$20 billion through bond and share sales, regulatory filings showed on Monday. The Oracle US$20bil fundraising targets a costly AI and cloud build-out. Shares of Oracle (ORCL) fell 8.8% to US$119.22 on the news.

What Is Oracle’s US$20bil Fundraising For?

Stock market trading screen showing Oracle US$20bil fundraising — Stock market trading, with Oracle’s US$20bil fundraising in focus

Oracle said the proceeds will fund general corporate purposes. These include capital spending, debt repayment, acquisitions, dividends and share buybacks.

The company had US$125.34 billion in notes payable and other borrowings as of August 31. That is about 1.9 times its fiscal 2026 revenue of US$67.36 billion.

How Far Did Oracle Shares Fall?

Shares dropped 8.8% to US$119.22, pushing losses this year to about 39%. Bloomberg News reported that the share sale is expected to be priced at US$116, an 11% discount to Friday’s close.

Oracle’s existing 6.85% bonds due in 2066 fell more than 1.2 cents on the dollar, according to Tradeweb data.

Why Did Oracle Shares Rally 11% on Wednesday?

CFO Hilary Maxson said Oracle expects free cash flow to turn positive in the second half of fiscal 2028. Shares rallied about 11% on Wednesday after that comment.

Oracle said last week that capital spending would peak this fiscal year and the next. It also pledged to raise no more than US$20 billion in additional AI financing through fiscal 2030.

What Are Oracle’s Fiscal 2030 Targets?

Oracle seeks to more than triple revenue by fiscal 2030. It expects revenue to exceed US$225 billion and adjusted earnings to top US$21 per share in that year.

Wall Street expects adjusted profit per share of US$8.14 for fiscal 2027, according to data compiled by LSEG. That is the near-term benchmark against which the Oracle US$20bil fundraising will be judged.

How Is the Oracle Bond Offering Structured?

The bond offering comprises six tranches maturing between 2029 and 2046. It includes one floating-rate tranche and five fixed-rate tranches.

Interest rates, prices and the number of shares have not been set. Oracle did not immediately respond to a Reuters request for comment.

Why Do Investors Question Oracle’s AI Spending?

Investors focus on the spending because Oracle lacks the revenue scale of cloud rivals Microsoft and Amazon. The company also has significant exposure to OpenAI, the loss-making developer of ChatGPT.

Which Oracle Numbers Matter for Malaysian Holders?

Oracle is not listed on Bursa Malaysia, so Malaysian investors must trade ORCL through an overseas brokerage account. Investors who track US tech shares can compare such figures with tools in our AI Stock Analysis for Malaysians guide.

Three numbers matter most: the final pricing against the US$116 level, the share count once it is set, and the free cash flow turn in the second half of fiscal 2028.

Key Takeaways

Oracle plans to raise US$20 billion through bonds and shares.
Shares fell 8.8% to US$119.22, with losses of about 39% this year.
The share sale is expected at US$116, an 11% discount to Friday’s close.
Borrowings of US$125.34 billion compare with fiscal 2026 revenue of US$67.36 billion.
Oracle targets revenue above US$225 billion and adjusted EPS above US$21 in fiscal 2030.

This article is for information only and is not financial advice. Always do your own research before investing.

Frequently Asked Questions

How much is Oracle raising in its US$20bil fundraising?

Oracle plans to raise US$20 billion through bond and share sales, regulatory filings showed on Monday. The proceeds cover general corporate purposes, including capital spending and debt repayment.

Is Oracle listed on Bursa Malaysia?

No, Oracle is not listed on Bursa Malaysia. Malaysian investors need an overseas brokerage account to trade ORCL.

How much debt does Oracle carry?

Oracle had US$125.34 billion in notes payable and other borrowings as of August 31. That compares with fiscal 2026 revenue of US$67.36 billion.

When will Oracle’s free cash flow turn positive?

CFO Hilary Maxson said Oracle expects free cash flow to turn positive in the second half of fiscal 2028. Oracle also said capital spending would peak this fiscal year and the next.

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