Oracle Prices $10 Billion Stock Sale at $116 Amid AI Expansion

This article first appeared on GuruFocus. Oracle Corp. (ORCL, Financials), the enterprise software and cloud infrastructure company, priced a $20 billion financing package as it continues to fund its artificial intelligence expansion. Warning! GuruFocus has detected 5 Warning Signs with ORCL. Is ORCL fairly valued? Test your thesis with our free DCF calculator. Included in the deal is a $10 billion stock offering of ordinary shares at $116 a share, an 11.2% discount to Oracle's last closing price.The other $10 billion will come from a bond issue. The funding adds to Oracle's cash pile as it expands expenditure on cloud capacity and AI technology.For shareholders, the stock sale means dilution and the bond part adds leverage and future interest costs.