Super Micro Computer announced plans to raise approximately $7 billion through a series of equity and equity-linked financing transactions to support the purchase of components needed to fulfill a surge in demand for its advanced AI servers.
The financing package includes $5 billion of underwritten public offerings, consisting of approximately $1.25 billion of common stock and about $3.75 billion of depositary shares backed by newly issued mandatory convertible preferred stock. The company also plans to establish an at-the-market common stock program that could raise up to an additional $2 billion beginning no earlier than the third quarter of 2026.
Supermicro said it intends to use a portion of the proceeds to fund the purchase of components required to fulfill approximately $39 billion of AI server orders received in recent weeks from more than 20 customers. The orders, which include demand for the company’s Data Center Building Block Solutions, are expected to be delivered over future quarters. Remaining proceeds may be used for general corporate purposes, including debt repayment, working capital and capital expenditures.
The depositary shares will each represent a one-twentieth interest in a newly created series A mandatory convertible preferred stock. Unless converted earlier, the preferred shares are expected to automatically convert into common stock around June 1, 2029. Supermicro intends to list the depositary shares on the Nasdaq Global Select Market under the ticker symbol “SMCIP.”
J.P. Morgan, Goldman Sachs and Citigroup are serving as lead joint bookrunning managers for the offerings, while ICR Capital is acting as financial advisor for the depositary share transaction.
Supermicro, headquartered in San Jose, California, provides servers, AI systems, storage solutions, IoT technologies, switches, software and support services for AI, cloud and edge computing markets.
KEY QUOTES:
“Supermicro announced a series of concurrent equity and equity-linked financing transactions totaling $7.0 billion, in expected aggregate amount, as part of its plan to fund the purchase of components to satisfy the AI orders that the Company has received in recent weeks for its advanced AI servers.”
Super Micro Computer, Inc.
“The Company intends to use a portion of the net proceeds from the offerings, together with proceeds from the ATM program, to fund the purchase of components to satisfy the approximately $39 billion of orders that the Company has received in recent weeks for its advanced AI servers, including its Data Center Building Block Solutions, from more than 20 customers, that the Company plans to fulfill in future quarters.”
Super Micro Computer, Inc.
