Meta raises its equity offering to $97.5bn and Nvidia takes $3bn

Meta Platforms on 27 October increased the planned size of its largest-ever equity raise to $97.5bn, according to Reuters. The common stock portion rose to $25bn from $22.5bn and was priced at $625 a share. Meta also plans to sell 250 million convertible preferred depositary shares at $50 each, about $12.5bn, and a separate at-the-market programme of up to $60bn that is expected to begin after its new non-voting Class C shares start trading in the first quarter of 2027.

Nvidia, Advanced Micro Devices and Broadcom expressed interest in buying up to $5bn of Class A shares in total, and Nvidia said it would invest $3bn. Analysts have pointed to the circularity of chip suppliers financing one of their largest customers. Meta reported negative free cash flow of $2.12bn in the third quarter, its first in more than a decade, and has raised the lower end of its capital expenditure forecast to $135bn–$145bn. Its shares fell 1.6% on Tuesday.