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Infotech capital markets activity drops to second lowest year-to-date in August

Publicly traded information technology companies in the U.S., Canada and Bermuda raised about $9.58 billion through capital offerings in August, marking the second-lowest total for 2021.

By comparison, the infotech sector raised $16.18 billion in July and $22.61 billion in June. About $7.25 billion raised through capital offerings in April is the lowest monthly total so far in 2021.

Senior debt offerings accounted for $8.28 billion of capital raised, while $1.28 billion and $18.2 million were raised through common equity and preferred security offerings, respectively.

Capital markets activity from the sector for the year to date peaked in March, when companies raised $40.67 billion, including about $34.34 billion from debt offerings, $6.12 billion from common equity offerings and $204 million through preferred security offerings.

Microsoft Corp.'s $6.25 billion debt offering in March remains the sector's largest for the year to date. The offering was part of a set of offers to exchange several series of notes. Notably, Microsoft said it will not receive any cash proceeds from the exchanges. Two March debt offerings from Oracle Corp. ranked as the second- and third-largest to date, at $3.25 billion each.

Oracle also ranked as the infotech company that raised the most capital overall for the year to date, bringing in $15 billion from six different series of notes in a debt offering. Apple Inc. came in second, raising $14 billion through a six-tranche debt offering.

Online dating and social networking company Bumble Inc.'s February initial public offering accounted for the infotech sector's largest common equity raise in the year to date, bringing in $2.47 billion. Zoom Video Communications Inc.'s $2 billion offering of its class A common stock came in a close second for common equity raises for the sector.

Internet software and services companies raised the most among the broader infotech sector for the year to date, bringing in $46.77 billion in aggregate, followed by system software companies, with $34.21 billion.

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