Applied Optoelectronics Inc. (NASDAQ:AAOI) shares are trading higher Tuesday on possible continued momentum after the company announced Monday that it completed its previously disclosed $600 million at-the-market equity offering program.
- Applied Optoelectronics shares are climbing with conviction. What’s behind AAOI gains?
AOI Raises Nearly $588 Million at an Average $105.36 a Share
AOI disclosed on August 21 that it had filed a prospectus supplement to offer and sell up to $600 million of its common stock. The company sold a total of 5,694,845 shares at an average price of $105.36 per share, for proceeds of about $588 million net of commissions and fees.
“We are pleased to have successfully completed our third at-the-market equity offering program this year, which strengthens our balance sheet and supports our ability to address growing demand for high-speed optical connectivity in AI data centers,” said Dr. Thompson Lin, AOI’s Founder, President and CEO.
Proceeds Earmarked for Manufacturing Expansion
AOI said it intends to use the net proceeds for general corporate purposes, which may include debt repayment, working capital and capital expenditures. The company said the spending will primarily support its manufacturing expansion for data center optical devices.
Applied Optoelectronics Shares Trade Higher
AAOI Price Action: At the time of publication, Applied Optoelectronics shares are trading 4.57% higher at $127.13, according to data from Benzinga Pro.
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