Infotech capital markets activity surges to $20.15B in February

Publicly traded IT companies in the US, Canada and Bermuda raised $20.15 billion through capital offerings in February, according to S&P Global Market Intelligence data.

This is the sector's strongest showing so far in terms of capital markets activity since raising $13.77 billion in November 2022. Last month's total is also more than double the $9.5 billion raised in January.

Debt offerings comprised the largest share of February's infotech capital activity at $19.96 billion. Common equity offerings raised $142.0 million, while preferred security offerings brought in $50.5 million.

Intel Corp. and Oracle Corp. dominated the IT sector's capital activity last month.

Intel on Feb. 7 completed seven concurrent debt offerings, raising a total of $11.00 billion, which will be used for working capital, debt repayment and other general corporate purposes.

The debt offerings came days after S&P Global Ratings downgraded its ratings on Intel, including the issuer credit rating, to A from A+ with a negative outlook, citing the company's lower-than-expected first-quarter guidance.

* Learn more about the decline in the infotech sector's M&A activity in February. * Check out detailed lists of Intel and Oracle's capital offerings on S&P Capital IQ Pro. * Visit our Transactions Statistics page to run a custom screen of capital offerings by industry or geography.

Software company Oracle on Feb. 2 raised $5.25 billion through four concurrent debt offerings, the proceeds of which will be spent on working capital and debt repayment.

Two of Oracle's debt offerings in February, worth $2.25 billion and $1.5 billion, are among the largest infotech offerings so far this year. The list also includes three of Intel's debt offerings last month, worth $2.25 billion, $2.00 billion and $1.50 billion.

Broadcom Inc.'s debt offering in end-March 2022 and Oracle's senior notes offering in November 2022, both amounting to $2.5 billion, tied for the biggest infotech offering in the past 13 months.

Semiconductor companies topped other infotech subsectors in raising the most capital as of February-end with $12.02 billion. IT consulting and other services companies ranked second with $7.54 billion, followed by systems software companies with $5.26 billion. The companies were sorted based on the latest global industry classification standard that S&P Global Market Intelligence began implementing in March.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.