Meta prices $37.5 billion of new shares as it plans to raise up to $95 billion for AI
Oct 27, 2026
Meta Platforms (NASDAQ: META) announced on Monday, October 26, 2026 the pricing of two share offerings worth a combined $37.5 billion. According to the Financial Times and CNBC, the offerings are the first part of a plan to raise up to $95 billion in equity to fund AI infrastructure.
What Meta announced
According to Meta's announcement:
- Meta priced $25 billion of Class A common stock at $625 per share, about 40 million shares, increased from an initial $22.5 billion
- the common stock is being sold through forward sale agreements with Morgan Stanley and Goldman Sachs, which are expected to settle by November 19, 2027, with expected net proceeds of about $24.9 billion
- Meta also priced 250 million depositary shares at $50 each, representing 6.50% Series A mandatory convertible preferred stock, with expected net proceeds of about $12.5 billion
- the preferred shares are scheduled to convert into Class A common stock around August 15, 2029
- both offerings are expected to close on October 29, 2026, and the underwriters have options to buy additional shares
- Meta said it will use the proceeds for general corporate purposes
The wider plan
According to the Financial Times and CNBC, Meta plans to raise a further $60 billion through an "at the market" programme, in which a company sells shares gradually on the stock exchange. The reports said chipmakers Nvidia, AMD and Broadcom are cornerstone investors. These details were not included in Meta's pricing announcement.
Why Meta is raising money
Meta is spending heavily on data centres, chips and other infrastructure for AI. In July, it forecast 2026 capital expenditures of $130 billion to $145 billion. According to the Financial Times, Meta said AI "is creating significant opportunities" across its business.
What these offerings are
In a forward sale agreement, banks sell shares to investors now, and the company delivers new shares and receives the money later, on agreed dates. Mandatory convertible preferred stock pays a fixed dividend and automatically converts into common shares on a set date, with the conversion rate depending on the share price at that time.
Why companies issue shares
Companies can raise money by borrowing or by issuing new shares. Issuing shares does not create debt, but it increases the number of shares outstanding, which can reduce existing shareholders' percentage ownership. Large technology companies have mostly relied on cash from operations and bonds to fund spending, so a share sale of this size is unusual.
Class C shares
Meta has created a new Class C share class through a charter amendment filed on October 21. According to the pricing announcement, the preferred stock and forward sale agreements may refer to Class C shares in certain circumstances once they are issued.
The banks involved
Morgan Stanley and Goldman Sachs are the lead bookrunners for both offerings. Allen & Company, BDT & MSD, Centerview Partners, Jefferies, Lazard and The Raine Group are co-managers. Meta has applied to list the depositary shares on Nasdaq under the symbol METAM.
What to watch
Key items include the completion of the offerings on October 29, details of any at-the-market programme, the start of trading in Class C shares and Meta's updated spending plans.
Risks and uncertainties
Issuing new shares can dilute existing shareholders. The final amount Meta raises may differ from the figures reported. Large investments in AI may not produce the expected returns, and technology shares can be volatile.
What this means for investors
For Investing.one users following META, the share offerings and Meta's AI spending plans may be relevant. The information above is based on Meta's announcement and media reports.
Sources
This is not investment advice. Your capital is at risk.
www.investing.one is solely and exclusively operated by Tradeplace Limited (Registration number HE 434666). Tradeplace Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (License number 455/25).
The information on this website is general in nature. Please consider the information in light of your objectives, financial situation and needs.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
We do not establish accounts to residents outside of the EU/EEA area. For further details please see the Client Agreement - Terms and Conditions. For privacy and data protection related complaints and information on handling personal data please refer to our Privacy Policy.
