Supermicro Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Super Micro Computer, Inc. (SMCI) announces a proposed underwritten public offering of 2,000,000 shares of common stock, with an option for an additional 300,000 shares. Goldman Sachs & Co. is the sole underwriter. The offering's completion is subject to market conditions. A registration statement has been filed with the SEC.

Insights

Market Research Analyst

The announcement of Super Micro Computer, Inc.'s public offering of 2,000,000 shares, with a potential additional 300,000 shares, is a strategic move that can have multiple implications for the company's financial health and market position. The influx of capital is likely aimed at funding growth initiatives or strengthening the balance sheet. Investors will be keen on the pricing of the offering, as it will affect the earnings per share and could lead to dilution of existing shareholders' equity.

Considering Goldman Sachs & Co. LLC's involvement as the sole underwriter and book-running manager, the offering is backed by a reputable financial institution, which could enhance investor confidence. However, the market's reception will depend on current market conditions, investor appetite for tech stocks and the company's performance metrics relative to its peers.

Financial Analyst

From a financial perspective, the timing and success of Supermicro's stock offering will be influenced by the company's recent financial performance, market trends and investor sentiment towards the technology sector. The additional capital raised could be used to accelerate R&D, expand market reach, or reduce debt, which in turn could potentially improve the company's competitive edge and long-term profitability.

It's important to monitor the post-offering stock performance, as it may provide insights into the market's valuation of the company and the effectiveness of the capital raised. The offering's terms, such as the share price and any discount offered to the underwriter, will also be critical in assessing the immediate financial impact on the company and its shareholders.

Securities & Exchange Legal Expert

Legally, the offering's compliance with SEC regulations, evidenced by the effective registration statement on Form S-3, is a foundational aspect of this process. The availability of a preliminary prospectus to investors outlines the terms and risks associated with the offering and is a standard procedure to ensure transparency and protect investors' interests.

Moreover, the legal stipulation that the sale of securities is contingent on registration or qualification under the relevant state's securities laws underscores the importance of adhering to jurisdictional legal frameworks to prevent any regulatory setbacks that could affect the offering's timeline or success.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Super Micro Computer, Inc. (“Supermicro” or the “Company”) (Nasdaq: SMCI) today announced the launch of a proposed underwritten registered public offering of 2,000,000 shares of its common stock. In addition, Supermicro expects to grant the underwriter a 30-day option to purchase up to an additional 300,000 shares of its common stock. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Goldman Sachs & Co. LLC is acting as sole underwriter and sole book-running manager for the proposed offering.

A registration statement on Form S-3 (including a preliminary prospectus describing the terms of the offering) relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. The offering will be made only by means of a prospectus forming a part of that effective registration statement. A copy of the final prospectus relating to the offering will be filed with the SEC and may be obtained, when available, by contacting Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone at (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Super Micro Computer, Inc.

Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in San Jose, California, Supermicro is committed to delivering first to market innovation for Enterprise, Cloud, AI, and 5G Telco/Edge IT Infrastructure. We are a Total IT Solutions manufacturer with server, AI, storage, IoT, switch systems, software, and support services. Supermicro's motherboard, power, and chassis design expertise further enables our development and production, enabling next generation innovation from cloud to edge for our global customers. Our products are designed and manufactured in-house (in the US, Taiwan, and the Netherlands), leveraging global operations for scale and efficiency and optimized to improve TCO and reduce environmental impact (Green Computing). The award-winning portfolio of Server Building Block Solutions® allows customers to optimize for their exact workload and application by selecting from a broad family of systems built from our flexible and reusable building blocks that support a comprehensive set of form factors, processors, memory, GPUs, storage, networking, power, and cooling solutions (air-conditioned, free air cooling or liquid cooling).

Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.

All other brands, names, and trademarks are the property of their respective owners.

Forward-Looking Statements

Except for historical information, certain statements in this press release, including statements regarding the proposed follow-on public offering and the proposed terms of such offering, are forward-looking in nature and are subject to risks, uncertainties and assumptions about Supermicro and its business, including, without limitation, risks and uncertainties related to market conditions and whether the proposed offering will be completed on the expected terms or at all. Such forward-looking statements involve substantial risks and uncertainties that relate to future events and the actual results could differ significantly from those expressed or implied by the forward-looking statements. Any forward-looking statements are based on Supermicro’s current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Supermicro makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change, except as required by law. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Supermicro’s business in general, please refer to the “Risk Factors” section in Supermicro’s automatically effective shelf registration statement on Form S-3 filed with SEC on March 19, 2024 and the documents incorporated by reference therein, including its Annual Report on Form 10-K filed with the SEC on August 28, 2023 and its Quarterly Reports on Form 10-Q for the quarters ended September 30, 2023 and December 31, 2023, filed with the SEC on November 3, 2023 and February 2, 2024 respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240318857351/en/

Investor Relations Contact:

Nicole Noutsios

email: ir@supermicro.com

Source: Super Micro Computer, Inc.

FAQ

How many shares of common stock is Super Micro Computer, Inc. (SMCI) proposing to offer?

Super Micro Computer, Inc. (SMCI) is proposing to offer 2,000,000 shares of common stock.

Who is the sole underwriter for the proposed offering by Super Micro Computer, Inc. (SMCI)?

Goldman Sachs & Co. is the sole underwriter for the proposed offering by Super Micro Computer, Inc. (SMCI).

What is the role of Goldman Sachs & Co. in the proposed offering by Super Micro Computer, Inc. (SMCI)?

Goldman Sachs & Co. is acting as the sole underwriter and sole book-running manager for the proposed offering by Super Micro Computer, Inc. (SMCI).

Where can a copy of the final prospectus relating to the offering be obtained?

A copy of the final prospectus relating to the offering by Super Micro Computer, Inc. (SMCI) can be obtained by contacting Goldman Sachs & Co. , 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone at (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com.

What is the purpose of the registration statement filed with the SEC by Super Micro Computer, Inc. (SMCI)?

The registration statement filed with the SEC by Super Micro Computer, Inc. (SMCI) is related to the proposed offering of common stock and has become effective.