Nebius Group (NBIS), a leading AI infrastructure company, saw its stock plummet 5.17% in pre-market trading on Wednesday following the announcement of a significant capital raising initiative. The company revealed plans for a private offering of $2 billion in convertible senior notes and a concurrent public offering of Class A ordinary shares, raising concerns about potential shareholder dilution.

The convertible notes offering consists of two series: $1 billion due in 2030 and another $1 billion due in 2032. Additionally, Nebius Group plans to grant initial purchasers options to buy up to an additional $300 million in notes. Alongside this, the company announced a proposed public offering of $1 billion in Class A ordinary shares, further adding to the capital raise.

Nebius Group stated that it intends to use the net proceeds from these offerings to finance its business growth. This includes acquiring additional compute power and hardware, securing strategic land plots, expanding its data center footprint, and for general corporate purposes. While this move aims to support the company's accelerated growth in its core AI cloud business, the market's initial reaction suggests investors are wary of the potential dilutive effects of these offerings on existing shareholdings.