Key Takeaways
- Super Micro Computer announced Tuesday it will offer an additional 2 million shares to raise $2 billion.
- The equity sale will raise capital to support “operations, including the purchase of inventory and other working capital purposes, manufacturing capacity expansion and increased R&D investments,” the company said in a filing with the Securities and Exchange Commission.
- The stock led losses in the S&P 500 Monday, its first day of inclusion in the index.
- Super Micro Computer shares were down more than 12% in early trading Tuesday.
Super Micro Computer (SMCI) shares tumbled over 12% in early trading Tuesday after the company announced it will offer an additional 2 million shares to raise $2 billion.
The company said “the principal purposes of this offering are to obtain additional capital to support our operations, including for the purchase of inventory and other working capital purposes, manufacturing capacity expansion and increased [R&D] investments,” according to a Securities and Exchange Commission (SEC) filing.
After the offering, there will be more than 58.55 million Super Micro Computer shares outstanding with an additional 300,000 shares available to Goldman Sachs as the underwriter.
The equity sale announcement comes after Super Micro Computer led losses in the S&P 500 Monday, on its first day of inclusion in the index.
Super Micro Computer shares were down 12.5% at $876.14 as of 11:25 a.m. ET Tuesday. Despite this week’s losses, the stock has more than tripled in value since the start of 2024.