Shares of Celestica fell sharply Thursday after the company said it would seek to raise $3 billion in a share offering to invest in the company as it faces surging artificial intelligence demand.

Shares in Toronto were recently down 11% at 453.53 Canadian dollars ($323.66).

The Toronto-based electronics manufacturing services company is looking to capitalize on what it calls robust demand and expanding visibility across the global AI infrastructure buildout.

"Celestica is investing to capture multi-year growth opportunities across its key markets of high-performance AI compute and data center Ethernet networking," the company said late Wednesday.

Celestica acts as a key contract manufacturer and design partner for cloud hyperscalers, building custom server racks and high-speed ethernet switches that power AI data centers. Demand among big tech companies has been growing at breakneck speed as tech giants rush to develop the physical infrastructure required to handle massive AI computing workloads.

Chief Financial Officer Mandeep Chawla said the company is seeing accelerating momentum across the business, and it requires a strong capital structure with more balance-sheet flexibility to see through its long-term strategy.

To raise its war chest, Celestica is launching an offering of about 9.7 million shares at a price of $310 apiece.

The price is below the company's recent trading price. Celestica's stock has been performing well in 2026. With the day's decline, the stock is still up 7.9% year-to-date, and 61% over the last 52 weeks.

The company also intends to give its underwriters a 30-day option to purchase an additional 1.45 million shares at the same price, which would represent another $450 million.