Shares of Microchip Technology fell 3.2% in after-hours trading on Mar. 19 after the company announced a plan to raise US$1.35 billion through a convertible stock offering.

The stock had previously closed up 0.7% at US$54.57 before dropping to US$52.79.

The company, valued at US$29 billion, plans to use the funds for capped call transactions to limit share dilution and repay debt, including notes from its commercial paper program.

Microchip recently announced it would lay off 2,000 employees, about 9% of its workforce, due to excess inventory and weak automotive sector demand.