Meta Prices $37.5 Billion Share Offering Under Massive Funding Plan
Key Facts
Meta priced its offering of common and preferred shares to raise $37.5 billion on October 27, 2026, marking the first stage of its broader $95 billion fundraising strategy. The company priced 250 million depositary shares for mandatory convertible preferreds at $50 each to raise $12.5 billion, alongside a $25 billion Class A common stock offering priced at $622.92 per share.
The proceeds are intended to support core operations and artificial intelligence opportunities, with The Guardian reporting potential interest from Nvidia, AMD, and Broadcom in purchasing up to $5 billion in shares. This pricing follows Meta's third-quarter revenue of $64.60 billion, which exceeded analyst estimates. Meta shares closed at $642.62 on October 23, 2026, prior to the disclosure of the finalized $37.5 billion offering terms.
Latest Updates · 4
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Update: Meta's stock declined by nearly 2% on October 27, 2026, following the announcement of the funding details. The drop reflects investor concerns over share dilution linked to the scale of the $95 billion capital plan.
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Update: Meta clarified on October 27, 2026, that the remaining $60 billion of its total $95 billion funding program is planned to be raised through future sales of non-voting Class C shares. This structural detail completes the funding roadmap following the initial $37.5 billion pricing of common and preferred stock.
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Update: Meta priced its Class A common stock offering at $625.00 per share on October 27, 2026. The company also set the price for its 6.50% mandatory convertible preferred stock at $50 per depositary share as part of the initial phase of its financing plan.
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Update: Additional details regarding the offering reveal that Meta's mandatory convertible preferred stock is expected to carry a dividend yield ranging from 6% to 6.5%. These dividend terms are part of the financing structure aimed at attracting investors to support the company's expansion into artificial intelligence technologies.