Meta's $25 Billion Stock Offering Draws Fivefold Demand as AI Spending Accelerates

Meta Platforms' expanded $25 billion common stock offering drew subscription demand roughly five times the deal size, part of a $98 billion equity financing plan that would rank among the largest ever if fully executed. The shares were priced at $625 each, a 2.7% discount to the prior Friday close before the deal was announced. More than half of the shares were allocated to long-only institutions and existing investors, with the 15 largest subscribers taking about 70%, Bloomberg reported, citing people familiar with the matter. Meta shares fell as much as 1.4% to $621.47 in New York trading Tuesday, below the offering price. The financing also includes $12.5 billion of mandatory convertible preferred stock, which was likewise multiple times oversubscribed, and a planned at-the-market program. Meta said proceeds will fund AI infrastructure and personal superintelligence development, including its Muse AI agent and Muse Wonder model. Morgan Stanley and Goldman Sachs are managing the offering.