Western Digital Offloading $3B Sandisk Stake, Buyers Pile In

Western Digital is cashing in on its Sandisk spinoff in a big way. The digital storage giant plans to raise $3.09 billion by selling a stake in the newly independent Sandisk Corp.

The shares are being offered at $535 to $555 apiece — roughly a 9.4% discount to Tuesday's closing price. Despite that haircut, demand isn't the problem. The offering is already oversubscribed, meaning investors want more shares than Western Digital is putting on the table.

The move comes after Western Digital completed its spinoff of Sandisk, separating the flash memory business into its own publicly traded entity. Selling down its remaining stake lets WD pocket billions while giving institutional investors a discounted entry point into the storage chip maker.

Oversubscription signals strong market appetite for Sandisk as a standalone play.