Shares of Wistron Corporation fell more than 6% on Tuesday after the Taiwanese electronics manufacturer priced a $1.47 billion global depositary receipt offering. The Nvidia supplier stated that the capital raise is intended to fund the procurement of raw materials.
According to a company filing, Wistron priced 25 million global depositary receipts at $58.88 each, equivalent to 250 million new common shares. Each share was priced at approximately NT$186.24, representing a discount of about 5.5% relative to the stock’s closing price of NT$197 on Monday. The newly issued shares account for roughly 7.29% of Wistron’s outstanding shares prior to the offering.
The company indicated that the issuance is expected to take place on Thursday, with proceeds designated for foreign-currency raw material purchases. Despite the recent decline, Wistron’s stock has gained approximately 23% year-to-date.
The fundraising aligns with Wistron’s strategic expansion in the AI server sector. Last month, the company approved additional capacity investments in Taiwan and the United States. Specifically, Wistron authorized NT$10.5 billion in capital expenditure for facilities in Taiwan, along with a combined $53 million for two U.S. subsidiaries to support future AI business growth.
In July, Wistron opened its first U.S. manufacturing facility, a $700 million AI server plant located in Fort Worth, Texas. The site currently produces Nvidia’s GB300 Grace Blackwell Ultra systems and is slated to expand production to the next-generation Vera Rubin platform. For the second quarter, Wistron reported revenue of NT$895.4 billion and profit after tax of NT$14.8 billion.
Six percent drop overnight over raw materials? Seems like a classic dilution play dressed up as strategy.
Great long-term growth story here. The dip is just noise against the AI server expansion.