Super Micro postpones the sale of two million shares until after the closing

(Bloomberg) — Super Micro Computer Inc. Directing potential investors in selling 2 million shares at $875 per share, below the previously marketed range, according to people familiar with the matter.

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The sources said that Goldman Sachs Group, the sole underwriter for the sale of shares, is informally communicating the price after delaying the timing of the sale earlier. Pricing was scheduled to take place before Super Micro shares begin trading on Wednesday, the people said.

Bloomberg News reported that the company offered to sell two million shares at a price of $900 to $1,000.68 per share. The sale was later deemed a so-called market trade, and depending on investor demand, the shares would likely be priced outside the previously suggested range, the people said.

At $875 per share, the company would raise up to $1.75 billion, according to data compiled by Bloomberg.

Read more: Super Micro seeks to sell up to $2 billion worth of shares after rally

Super Micro shares closed at $910.97 a share on Tuesday, down about 9% from Monday's closing price. They fell 13.8% after the stock sale was announced.

No final decisions have been made yet, and details of the share sale, such as the offering price and timing, may change, said the people, who requested anonymity because the information is not public. A representative for Goldman Sachs declined to comment. A Super Micro spokesperson did not immediately respond to a request for comment.

The computer server maker has been on a bit of a tear in the stock market lately, riding the wave of AI enthusiasm to gains of nearly 1,000% over the past 12 months, achieving a market value of $56 billion. Its shares, whose recent rise has outpaced even those of Nvidia Corp, have just been added to the S&P 500, confirmation of their rise to the big leagues and exposure to an ever-larger base of investors.

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-With assistance from Molly Schuetz.

(Updates all the time with target price.)

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