San Jose, California – Super Micro Computer shares took a tumble on Wednesday as the data center specialist announced the pricing for its upcoming stock offering. The company disclosed plans to sell 2 million additional shares of common stock at a price of $875 each, which will increase its total shares outstanding to over 58.5 million.
The stock fell 2.4% in premarket trading to $888.79 following the news, after dropping by 9% the day before to close at $910.97. The offering is expected to generate gross proceeds of $1.75 billion before deducting underwriting discounts, commissions, and offering expenses, with the closing set for Friday.
Goldman Sachs is set to be the sole underwriter and book-running manager for the offering, with Super Micro granting the underwriter a 30-day option to purchase up to an additional 300,000 shares at the public offering price. The company plans to use the proceeds to support its operations, including the purchase of inventory, manufacturing capacity expansion, and research and development investments.
Super Micro has experienced significant success in the AI investing market, with its stock rising by 252% year-to-date and a staggering 824% in the past 12 months. The company gained momentum after delivering a strong earnings report for the December quarter on January 29, propelling its stock to the top spot in IBD’s computer hardware industry group and landing it on two IBD stock lists: Big Cap 20 and Tech Leaders.
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