Super Micro's shares drop after pricing stock offering at discount
Reuters
Published Mar 20, 2024 12:51PM ET
(Reuters) - Super Micro Computer (NASDAQ:SMCI)'s shares fell 5% on Wednesday after the AI server maker announced the pricing of its public stock offering, selling the shares at a discount to their most recent closing price.
The slide marks the fifth consecutive session of decline for the stock, erasing about 28% from the company's market capitalization over the period and lowering its share price to $862.
Super Micro, one of the top sellers of AI-optimized servers and a beneficiary of the boom in AI services, is selling 2 million shares of its common stock at $875.00 a piece and expects to make $1.75 billion in gross proceeds, according to an exchange filing late on Tuesday.
The stock had ended 9% lower, at $910.97 on Tuesday, after Super Micro announced the stock offering.
Shares of the San Jose-based company have more than tripled so far this year.
Super Micro's ability to quickly develop AI-compatible servers as well as its in-house liquid cooling technology have helped the company turn into a key data-center supplier.
The recent surge in the firm's market value led to its inclusion in the S&P 500 index on Monday. That means exchange-traded funds that track the index must now own Super Micro's shares.
The company raised $1.7 billion last month in a convertible bond offering to fund its expansion plans.
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Written By: Reuters
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