Kiev, Ukraine – 12/04/2018: In this photo illustration, the Wistron Corporation logo is displayed on a smartphone. (Photo illustration: Igor Golovniov/SOPA Images/LightRocket, Getty Images)
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taiwan stocks Wistron Co., Ltd. Shares fell more than 6% on Tuesday after Nvidia’s suppliers priced a $1.47 billion global depositary receipt offering to fund the purchase of raw materials.
The company announced Monday that it will price its 25 million global depositary receipts at $58.88 each, representing 250 million new common shares, according to a company filing. Each share was priced at about NT$186.24, a discount of about 5.5% compared to Wistron’s Monday closing price of NT$197.
The new shares represent approximately 7.29% of Wistron’s outstanding shares prior to the issuance. Wistron said the offering is scheduled to be issued on Thursday and the proceeds will be used to purchase raw materials in foreign currency.
The company’s stock price has increased about 23% since the beginning of the year.
The funding comes as Wistron expands its AI server business, with the company last month approving additional capacity investments in Taiwan and the United States.
Wistron has approved NT$10.5 billion in additional capital expenditures for its Taiwan facility and a combined $53 million for two U.S. subsidiaries to support future AI business expansion.
In July, Wistron opened its first U.S. manufacturing facility, a $700 million AI server factory in Fort Worth, Texas. The facility currently produces Nvidia’s GB300 Grace Blackwell Ultra systems and plans to expand production to the next generation Vera Rubin platform.
For the second quarter, Wistron reported sales of NT$895.4 billion and profit after tax of NT$14.8 billion.
