(Updates with the stock move in the headline and the first paragraph.)
Super Micro Computer's (SMCI) shares slumped over 9% in Wednesday's premarket activity after the company unveiled plans for up to $7 billion in equity and equity-linked financing to meet demand.
Net proceeds will be used to fund $39 billion of orders for artificial intelligence servers, and for general corporate purposes, the company said late Tuesday.
The plan comprises $5 billion in public offerings, including $1.25 billion of common stock and $3.75 billion of depositary shares, the company said. It will grant underwriters a 30-day overallotment option to purchase additional shares.
Super Micro also announced an at-the-market offering of up to $2 billion that it expects to launch no earlier than Q3, according to a statement.
Price: $36.81, Change: $-3.82, Percent Change: -9.40%