NVIDIA Files For Mixed Shelf Offering Worth $10B With US SEC

  • Nvidia now has eight billion authorised shares and two million worth of authorised preferred shares.
  • In its last earnings call, Nvidia mentioned its plans to make big strides in artificial intelligence.

US semiconductor manufacturer Nvidia Corp filed a mixed shelf offering worth $10 billion with the US Securities and Exchange Commission on Tuesday, after reporting robust earnings for the quarter that ended January 29, 2023, last week.

The company said that the mixed shelf would include shares of its common stock, preferred stock, warrants, debt securities and purchase contracts.

A shelf offering allows a company to register a new issue with the SEC with a three-year period to sell the offering instead of selling it all at once. The company can adjust the timing of the sales of a new issue, enabling an issuer to access markets quickly, with little additional administrative paperwork, to take advantage of more favourable market conditions. Any unissued shares remain ‘on the shelf’ as treasury stock until offered for public sale.

The company said that the sale could be made occasionally, with the terms to be determined at the time of the offering. It added that the offering could involve a particular security or a combination of securities.

Nvidia now has eight billion authorised shares and two million worth of authorised preferred shares, with 2.47 billion of the common stock outstanding and no preferred stock outstanding.

After ending 2022 with a loss of a little over 50%, Nvidia’s shares have been on the mend, advancing about 59% year-to-date. The company gave no reason for its latest announcement, although it mentioned its plans to take big strides towards artificial intelligence in its fourth-quarter earnings release. Investors speculated whether the company had plans for a potential merger or acquisition on its plate, for it to require additional funding.

Founded in 1993, Nvidia is a leader in accelerated computing. The company’s invention of the GPU in 1999 fueled the growth of the PC gaming market. The company has constantly redefined computer graphics, and modern AI and is fueling the creation of the metaverse.



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