Broadcom (NASDAQ:AVGO) saw a rise of up to 2% in early market trading on Monday as it prepares for its upcoming 10-for-1 stock split. The split is set to increase Broadcom’s current 2.9 billion shares to 29 billion shares, according to a filing with the SEC. Along with this information, Broadcom also disclosed details about a mixed public offering of securities in another SEC filing. The exact amount of the offering was not disclosed in the filing.
In a separate filing, Broadcom stated that the net proceeds from the sale of securities will be used for general corporate purposes. This includes financing operations, repaying debt, and potential future business acquisitions. Since the announcement of the stock split on June 12, Broadcom shares have seen a significant increase of over twenty percent. The split is scheduled to take place after the market closes on Friday, July 12.
It’s worth noting that Nvidia (NVDA) recently underwent its own 10-for-1 stock split just over a month ago. While Broadcom specializes in custom-built chips, Nvidia’s focus is on hardware for more general AI applications. The stock split news comes as Broadcom continues to make strategic moves and investments in the semiconductor industry.
Article Source
https://seekingalpha.com/news/4122637-broadcom-edges-up-files-mixed-securities-shelf