Proactive Investors - Super Micro Computer Inc (NASDAQ:SMCI) (dba Supermicro) shares fell more than 11% after the maker of servers for AI applications announced plans to sell 2 million shares which, based on the company’s closing price of about $1,000, could raise $2 billion.
Shares of Supermicro traded down 11.7% at about $884 late morning on Tuesday after more than tripling in value since January.
The company when announcing the stock sale plan did not provide an issue price for the offering.
Goldman Sachs (NYSE:GS) is acting as the sole underwriter for the stock sale and is expected to be granted a 30-day option to purchase up to 300,000 Supermicro shares.
Supermicro said in a regulatory filing that proceeds from the stock sale would be used to purchase inventory, expand manufacturing capacity, increase research and development investments and other working capital purposes.