(Reuters) – Supermicrocomputer said on Tuesday it would sell 2 million shares, potentially trading for about $2 billion, sending the AI server maker's shares down 11%.
The San Jose-based company's stock has more than tripled since January, making stock sales a lucrative option for raising capital.
But for investors worried that Supermicro won't live up to rising expectations, buying into the stock on the back of that impressive rally could be risky.
Super Micro's ability to rapidly develop AI-optimized servers and in-house liquid cooling technology have helped the company grow into a leading data center supplier.
Supermicro's recent surge in market value led to the company being added to the S&P 500 index on Monday. This means that exchange-traded funds that track the index will now have to own super-micro stocks.
The company could raise about $1.8 billion from the takeover offer after Supermicro's stock price fell on Tuesday's stock sale announcement.
Last month, the company raised $1.7 billion in convertible debt to fuel its 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. said.
The company's outstanding shares will increase to 58.6 million shares after the offering, it said, adding that underwriter Goldman Sachs has the option to purchase up to 300,000 additional shares within 30 days.
(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguly, Noel Landewicz and Devika Shamnath)
