DLR: Does 12M new shares mean dilution or increased market cap?

Digital Realty Trust (DLR) is getting added to the SP500. At the same time DLR annouced that it has priced an underwritten registered public offering of 12,500,000 shares of its common stock, all of which are being offered in connection with the forward sales agreements described here

Does it mean that:

A. The existing outstanding shares will be dilluted by the addition of 12.5 million new shares out of thin air, or:

B. Since the new shares are sold for cash at a value exceeding current share price ($96), the market cap will increase by 12.5M x 96 = 1.2 billion USB; these new 1.2 billions being a cash infusion. So it's a way for companies to increase market price without changing existing share prices.

C. Something else.

Thanks for taking the time to answer.

Submitted May 17, 2016 at 02:17PM by cantbelieveitsbacon http://ift.tt/1TWb0Hh