Meta Raises Class A Share Offering to $25 Billion at $625 a Share
Key Facts
Meta raised the size of its Class A share offering to $25 billion from $22.5 billion and priced the shares at $625 each, according to a company announcement on October 27. The offering is part of a financing that also includes mandatory convertible preferred stock, while the company has linked the fundraising to expanding its infrastructure and AI computing capacity. The larger offering increases the amount to be raised through common stock compared with the plan first announced on October 26. The company also added an option for underwriters to buy additional shares after the offering closes. The transaction is expected to be completed on October 29.
The other part of the financing includes an offering of 250 million depositary shares at $50 each, under terms published by Meta through PR Newswire. Each depositary share represents a one-twentieth interest in a mandatory convertible Class A preferred share. The company set annual dividends on the preferred shares at 6.50%. This rate applies to dividends on the preferred shares and does not represent a yield on convertible bonds. The announced financing therefore combines the common stock offering and forward sale agreements, on the one hand, with depositary shares representing the preferred stock, on the other.
The fundraising comes as Meta expects capital expenditures of between $135 billion and $145 billion during 2026, according to its filing with the U.S. Securities and Exchange Commission. The company said the funds would support expansion of its infrastructure and AI computing capacity. In its third-quarter results, Meta reported revenue of $64.60 billion, up 26% from the same period a year earlier. Total expenses and costs reached $51.61 billion in the quarter, up 68% year over year, including the litigation expense cited in the filing. The company forecast fourth-quarter revenue of between $73 billion and $76 billion, assuming a roughly 1% negative impact from foreign exchange on annual revenue growth.
Meta said it had $82.45 billion in cash, cash equivalents and marketable securities as of September 30, 2026. That balance provides financial context for the new financing, which comes alongside a large capital spending program dedicated to infrastructure and computing capacity. In trading on Monday, October 26, the company's shares moved unevenly after the financing plan was announced, then ended the session down 1.9%, according to The Associated Press. The stock initially fell more than 2%, before turning higher and then returning to losses. The news agency reported that chip companies had expressed interest in buying, while the possibility of circular financing drew criticism.
Raising an additional $60 billion through Class C shares remains a future possibility, not an offering that has begun or financing that has been secured. Meta said it may launch an at-the-market sales program after Class C shares begin trading, while The Associated Press reported that the company could raise this amount by selling shares of the new class. Class C trading is not expected to begin before the first quarter of 2027, and the company has not set the timing, size or final terms of the sales program, nor has it entered into an agreement for it. The creation of the new class takes effect on January 19, 2027, subject to the charter amendment becoming effective. The announced distribution provides for one Class C share for each outstanding Class A and Class B share.
The Class A offering is scheduled to close on October 29, 2026, with underwriters receiving a 30-day option to purchase additional shares worth up to $3.75 billion, according to Meta's announcement. Exercising the option would be separate from the offering's base value of $25 billion. The Class C program, meanwhile, is tied to the start of trading in those shares, which is not expected before the first quarter of 2027. Meta has not yet announced a date, size or final terms for that program, making $60 billion a potential ceiling for future fundraising rather than confirmed proceeds.