Capital market activity in IT sector jumps to $17.91B in June

Capital market activity in publicly traded information technology companies rose year over year in June, according to S&P Global Market Intelligence data.

The sector that holds the highest weightage on the S&P raised $17.91B in aggregate capital in the month of June, up from $748M in June last year.

Debt offerings in June were worth $14.64B, making up the biggest share of the capital raised. Common equity offerings reached their highest level year to date at $2.27B, with preferred security offerings totaling $1B last month.

Let’s take a look at the three largest capital offerings in the month of June:

Super Micro Computer’s (NASDAQ:SMCI) issuance of $2.3B of convertible senior notes was the IT sector’s biggest capital offering in June.

Super Micro said that a portion of net proceeds from the offering will be used to fund the cost of entering into the capped call transactions. Up to $200M of the proceeds will be used to repurchase shares of common stock.

The second largest offering in the sector last month was by Cloudflare (NYSE:NET) which announced a sizable proposed private offering of $1.75B of convertible senior notes due 2030, with the option to increase the offering by another $250M.

“Cloudflare intends to use a portion of the net proceeds from the offering of the notes to pay the cost of the capped call transactions,” the company said.

June’s third biggest offering was by cybersecurity company Zscaler (NASDAQ:ZS) which proposed a private offering of $1.5B aggregate principal amount of its convertible senior notes due 2028.