Oracle $10 billion stock sale at $116 per share, Digi Mart USA News: Oracle (NYSE:ORCL) set a cap at its investor day on Oct. 28 allowing it to raise up to $20 billion of new money through fiscal 2030 in the stock and bond markets, which it expected to split equally between shares and debt. Five days later, on Nov. 2, it raised the full amount.
The cloud company sold 86.2 million new shares at $116 each, netting around $9.9 billion. A separate $10 billion of notes, in five issues maturing from 2029 to 2046, carries interest rates between 7% and 8.65%.
Both deals closed on Nov. 4.
As the author writes, the stock traded around $116 at the time of writing, about where the new shareholders bought in and near its lowest close in the past year. The author says the price Oracle received matters more than the size of the deal.
Oracle sold the stock about 11% below the $130.67 it closed at on Oct. 30, the last trading day before the deal. Shares had closed at $144.54 on investor day itself.
Because the limit was set in dollars rather than shares, the lower price meant more shares were issued: at $116, the $10 billion raise took about 86 million shares, roughly a quarter more than at around $145 a share.
Oracle’s promise spans its fiscal 2027-to-2030 investment cycle, and only refinancing of existing debt sits outside it. By its own commitment, Oracle should not need to sell more stock or new debt in the capital markets through fiscal 2030.
This could ease worries about further share sales, which Oracle relied on heavily this year. It sold $20 billion in stock using an at-the-market program in its fiscal first quarter of 2027, which ended Aug. 31, 2026.
The stock sale raises Oracle’s share count by about 3%, from 3.02 billion outstanding at the end of August to about 3.11 billion. At Oracle’s $0.50 quarterly dividend, the 86.2 million new shares add around $172 million a year in payouts.
The notes cost far more. Across the five issues, the $10 billion carries about $780 million in interest per year, adding to an interest bill that was already rising fast.
Oracle’s interest expense grew 29% year over year in fiscal 2026, reaching $4.6 billion. Growth sped up to 47% in the fiscal fourth quarter and 55% in fiscal Q1, when interest expense hit $1.4 billion for the three months.
The $20 billion raise does not go far at Oracle’s current spending rate. The company spent $28.5 billion on capital expenditures in fiscal Q1, more than triple the $8.5 billion it spent a year earlier as it expanded its cloud infrastructure business.
The whole raise covers around 70% of that one quarter.
The rest must come from the business, which is growing fast. Oracle’s operating cash flow hit a record $23 billion in fiscal Q1, up 184% year over year.
Remaining performance obligations, contracted revenue not yet recognized, reached $664 billion at the end of August. Management expects revenue to rise between 30% and 34% year over year in the fiscal second quarter.
However, capital spending topped operating cash flow by around $5 billion in fiscal Q1. Oracle does not expect positive free cash flow until the second half of fiscal 2028.
At about $116, Oracle stock costs about 10 times fiscal 2028’s expected adjusted earnings per share. The author argues this price is low enough to absorb an additional 3% of shares and the added interest, given revenue growth of roughly 30%.
The author also notes that Oracle’s borrowings were already about $125 billion at the end of August, before the new notes. If AI customers cut back before free cash flow turns positive, that debt could matter much more than the dilution.
The author says he would consider buying Oracle around $116, possibly adding shares gradually, and notes Oracle expects capital spending to peak this fiscal year and next.
