Taiwan's Wistron raises $1.5 billion in global share sale to fund raw material purchases

Nvidia supplier Wistron Corp is raising $1.47 billion through a global share sale after pricing the offering at $58.88 per depositary receipt, the Taiwanese server maker said in a stock exchange filing late on Monday.

Taiwanese tech firms ‌are turning ⁠to international ⁠investors for fresh funding as global AI spending lifts demand across the hardware supply ​chain, from servers to electronic components.

Wistron has approved extra spending to expand production capacity ​in Taiwan and opened a $700 million plant in Texas in July to manufacture Nvidia's latest AI systems.


Wistron said in the filing that it ​would use the proceeds from the share sale ⁠to fund ‌purchases of raw materials in foreign currencies.

Reuters reported ​earlier on ​Monday that Wistron was marketing 25 million global depositary receipts ⁠in a price range of $58.67 to $59.79 each. The final ​price was near the bottom of that range.

Wistron will ​issue 25 million global depositary receipts, representing 250 million common shares, according to the filing.

Each receipt represents 10 Wistron shares, translating to a price of about T$186.24 ($5.91) per share, based on an exchange rate of T$31.631 to the U.S. dollar, the filing showed.

The offering price ‌represents a discount of about 5.5% to Wistron's Monday closing price of T$197.

The new shares will dilute existing ​shareholders by about 7.29%, ​Wistron said in ⁠the filing, adding that it did not expect material dilution of shareholder interests.

Wistron said in August that AI server demand from cloud computing firms and business customers continued to exceed supply. Its second-quarter net profit rose 128% from a year earlier, while revenue climbed 64%.

Wistron's shares closed 0.5% lower on Monday, but have climbed 30% year-to-date.