TSS secures US$58.7m in Nasdaq stock sale
TSS raised its profile by securing US$58.7m late on Tuesday from an overnight stock sale, its first public offering of stock since uplisting to Nasdaq in November from an over-the-counter trading venue.
Lucid Capital Markets priced the all-primary sale of 3m shares at US$17, an 8.6% discount to the previous closing price of US$18.60. The shares closed on Wednesday at US$17.85, allowing for the 450,000 greenshoe shares to be fully exercised.
The supplier of server racks and other equipment used to build high computing data centres sold 13% of its share capital but only freed up the equivalent of a single day's trading volume.
Notably, TSS has a similar number of shares (3.7m) on loan to short sellers, according to LSEG data. The embedded short position helps explain why TSS shares plunged 23% on August 7, despite TSS reporting impressive quarterly and mid-year financial results.
Though it is still a very small company with just US$447m of market capitalisation, TSS is fast growing and already profitable.
TSS grew revenues by 410% to US$142.9m in the first half of 2025, with a net profit of US$4.5m and adjusted Ebitda of US$9.3m, up 215% and 278% from a year earlier.
"We believe we are still in the early stages of the AI infrastructure buildout cycle," said CEO Darryll Dewan on August 6 during a quarterly earnings call with analysts. "We expect continued robust growth as customer scale investments to meet evolving compute requirements in the quarters and years ahead."