(Bloomberg) — Super Micro Computer Inc. With the help of Evercore Inc. To help the company raise capital, according to people familiar with the matter, as the beleaguered server maker looks to shore up its finances.
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The high-powered server maker, which is trying to avoid delisting after missing an August deadline to file its annual financial report, is considering raising equity and debt, the sources said, requesting anonymity to discuss private matters.
San Jose, Calif.-based SuperMicro is considering a potential private investment in public equity, or PIPE, and is reaching out to private equity firms to gauge their interest in participating, the people said.
The discussions are the early stages and the company’s plans could change, the people added. Representatives for Super Micro and Evercore declined to comment.
Shares of Super Micro, which are down 69% from their all-time high in March, closed down 3.9% at $36.45 on Friday in New York, giving the company a market value of about $21 billion. Shares fell about 8% after the close of regular trading.
SuperMicro’s auditor, Ernst & Young LLP, resigned in October, citing concerns about the company’s governance and transparency. The company is also facing an investigation by the US Department of Justice following a report from short-seller Hindenburg Research.
Super Micro said in a statement last week that it plans to submit documents by the February 25 deadline.
–With assistance from Ryan Gould and Brody Ford.
(Updates with lower engagement in fifth paragraph.)
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