Oracle files shelf registration with SEC to raise $20bn for AI
Oracle filed an automatic shelf registration with the US SEC and plans to raise $20bn from shares and bonds to fund AI infrastructure.
Oracle filed an automatic shelf registration statement with the US Securities and Exchange Commission (SEC) on November 2, according to BigGo Finance.
BigGo Finance reported that the company plans to raise $20 billion, split into $10 billion of common shares and $10 billion of corporate bonds, to fund AI and cloud computing infrastructure.
The amount matches a four-year funding ceiling the company announced at its investor day five days before the announcement.
Oracle shares fell by up to about 15% from an intraday high recorded on Wednesday after the news, according to the same source.
What do these terms mean?
Shelf registration statement: a filing a company submits to the securities regulator that allows it to issue shares or bonds later without a new filing for each issue.
US Securities and Exchange Commission (SEC): the federal regulator that oversees financial markets and disclosure in the United States.
Common shares: ownership stakes in a company that give the holder the right to vote and share in profits.
Corporate bonds: debt instruments that companies issue to borrow money from investors in return for interest.
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