Cloudflare Inc. has announced plans to raise $2.175 billion through a private offering of senior convertible notes, following a strong rally in its shares after the cybersecurity company raised its profit outlook last week.

The notes, which mature in 2031, can be converted into cash or Cloudflare common stock, according to a statement issued Monday.

The company said it intends to use the proceeds for general corporate purposes and to fund the cost of derivative transactions linked to the offering.

Cloudflare shares surged 5.6 per cent on Friday after the company increased its annual profit forecast, exceeding analysts’ expectations.

The stock has gained more than 52 per cent so far this year.

However, shares fell as much as 4 per cent in premarket trading Monday following news of the planned offering.