FILE PHOTO: Logos of Super Micro Computer are pictured at COMPUTEX Taipei, one of the world's largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang/File Photo
(Reuters) - Super Micro Computer disclosed on Tuesday it will sell 2 million shares that could fetch about $2 billion, sending the artificial intelligence (AI) server maker's shares about 12% lower.
The San Jose-based company's shares have more than tripled since January, which makes raising funds through sale of equity a lucrative option.
The gains have outperformed those in Nvidia, which has been behind the relentless AI-led rally in Wall Street this year, thanks to soaring demand for its servers used in artificial intelligence data centers.
Super Micro's ability to quickly develop servers essential for generative AI applications, and its in-house liquid cooling technology have helped the company turn into a key supplier.
The surge in Super Micro's market value also led to its inclusion in the S&P 500 index on Monday, opening the stock to more investors.
Its shares have, however, lost 16% in value after declining for three straight trading sessions, and based on their closing price of $1,000.68, the company could raise about $2 billion. The issue price for the stock sale was not revealed.
Super Micro raised $1.73 billion last month in convertible bond offering to fuel business expansion.
Proceeds from the latest offering will be used to purchase inventory, expand manufacturing capacity, increase research and development investments and other working capital purposes, the company said in a regulatory filing with the U.S. Securities and Exchange Commission on Tuesday.
The company's outstanding shares will increase to 58.6 million after the offering, it said, adding that the underwriter, Goldman Sachs, has the option to buy up to 300,000 additional shares within 30 days.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
