Taiwan’s Wistron shares fall after $1.47 billion GDR placement
In Taiwan, shares of electronics manufacturer Wistron fell by more than 6% after the Nvidia supplier priced a $1.47 billion global depositary receipt offering. The company plans to use the proceeds to purchase raw materials in foreign currencies, CNBC Top News reports.
Placement terms
On September 7, Wistron priced 25 million global depositary receipts at $58.88 per unit. They correspond to 250 million new ordinary shares of the company. The price per share is approximately 186.24 Taiwanese dollars, around 5.5% below the September 7 closing price of 197 Taiwanese dollars.
The new shares represent about 7.29% of Wistron’s shares outstanding before the issuance. The company expects to issue the depositary receipts on Thursday. Since the beginning of the year, its shares have risen by approximately 23%.
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Expansion of AI server production
The capital raise comes as Wistron expands its artificial intelligence server manufacturing business. Last month, the company approved additional capital investments of 10.5 billion Taiwanese dollars in facilities in Taiwan and also allocated a total of $53 million to two subsidiaries in the United States for the future development of its AI business.
In July, Wistron opened its first manufacturing facility in the United States, a $700 million AI server plant in Fort Worth, Texas. The facility produces Nvidia GB300 Grace Blackwell Ultra systems; production for the Vera Rubin platform is expected to be expanded there in the future. For the second quarter, Wistron reported revenue of 895.4 billion Taiwanese dollars and profit after tax of 14.8 billion Taiwanese dollars.
