Super Micro Computer said it is lining up $7.0 billion in equity and equity-linked financing to help fund a wave of AI server orders it says recently totaled about $39 billion from more than 20 customers.
The financing package includes two underwritten offerings totaling $5.0 billion: about $1.25 billion of common stock and about $3.75 billion of depositary shares tied to newly issued mandatory convertible preferred stock. In addition, the company plans an at-the-market stock sale program of up to $2.0 billion, expected to start no earlier than the third quarter of 2026.
Supermicro said it intends to use the proceeds to buy components needed to fulfill the AI server orders in future quarters. It also said some of the money could go toward debt repayment, working capital and capital spending.
The depositary shares will represent a 1/20th interest in the preferred stock, with each depositary share expected to carry a $50 liquidation preference and the preferred stock a $1,000 liquidation preference per share. Unless converted earlier, the preferred stock is expected to automatically convert on or about June 1, 2029.
The company said the common stock offering and the depositary share offering are separate and do not depend on one another. It also said underwriters will have 30 days to buy additional shares under an over-allotment option.
J.P. Morgan, Goldman Sachs and Citigroup are leading the offerings. As a result of these announcements, the company's shares have moved -4.72% on the market, and are now trading at a price of $30.46. Check out the company's full 8-K submission here.
