Super Micro Computer said it plans to raise $7.0 billion through a mix of equity and equity-linked transactions to help finance the components needed for a wave of AI server orders.
The company outlined $5.0 billion of underwritten offerings, split between about $1.25 billion of common stock and about $3.75 billion of depositary shares tied to mandatory convertible preferred stock. It also plans an at-the-market program of up to $2.0 billion in common stock, expected to start no earlier than the third quarter of 2026.
Supermicro said the financing is aimed at supporting roughly $39 billion of AI server orders received in recent weeks from more than 20 customers. The company said those orders are expected to be fulfilled in future quarters.
The depositary shares would represent a 1/20th interest in newly issued Series A mandatory convertible preferred stock. The preferred stock would carry a liquidation preference of $1,000 per share, or $50 per depositary share, and would automatically convert on or about June 1, 2029, unless converted earlier.
The underwritten offerings are separate, meaning the common stock sale does not depend on the depositary share sale, and vice versa. Supermicro said the underwriters will have a 30-day option to buy additional shares in each offering.
The company said it may also use proceeds for debt repayment, working capital and capital expenditures. The market has reacted to these announcements by moving the company's shares -4.72% to a price of $30.46. Check out the company's full 8-K submission here.
