(Bloomberg) — Super Micro Computer Inc. is guiding potential investors in a sale of 2 million shares to a price of $875 each, below an earlier marketed range, according to people familiar with the matter.
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Goldman Sachs Group Inc., the sole underwriter of the share sale, is informally communicating the price after having earlier delayed the sale’s timing, the people said. The pricing was set to occur before Super Micro’s shares began trading on Wednesday, the people said.
The company was offering to sell 2 million shares at $900 to $1,000.68 each, Bloomberg News has reported. The sale was later considered a so-called marketed deal, and depending on investor demand, shares would potentially price outside the earlier proposed range, the people said.
At $875 per share, the company would raise as much as $1.75 billion, according to data compiled by Bloomberg.
Read More: Super Micro Seeks Up to $2 Billion in Share Sale After Rally
Super Micro shares closed at $910.97 each on Tuesday, down about 9% from Monday’s closing price. They had plunged as much as 13.8% following the share sale announcement.
No final decisions have been made and details of the share sale such as the price of the offering and the timing could change, the people said, asking not to be identified as the information isn’t public. A representative for Goldman Sachs declined to comment. A Super Micro spokesperson didn’t immediately respond to a request for comment.
The computer server maker has been on a stock market tear of late, riding the wave of enthusiasm in artificial intelligence to a gain of nearly 1,000% over the past 12 months, and earning a market cap as high as $56 billion. Its stock, whose recent rally dwarfs even that of Nvidia Corp., was just added to the S&P 500 Index, a confirmation of its ascension into the big leagues and exposing it to an ever-larger base of investors.
–With assistance from Molly Schuetz.
(Updates throughout with price target.)
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