Wistron Corporation, a supplier for Nvidia, has priced a global depositary receipt offering at $58.88 each, totaling 25 million receipts and representing 250 million new common shares. This pricing reflects a 5.5% discount to its previous closing price of NT$197, leading to a more than 6% drop in its share price on Tuesday.
The new shares will account for approximately 7.29% of Wistron's outstanding shares prior to the issuance, which is expected to occur on Thursday. The proceeds from this offering are designated for purchasing raw materials in foreign currencies, which is crucial for Wistron's ongoing expansion in the AI sector.
The company has recently approved significant capital expenditures, including NT$10.5 billion for facilities in Taiwan and $53 million for two U.S. subsidiaries.
Wistron has also opened a $700 million AI server manufacturing facility in Fort Worth, Texas, which currently produces Nvidia's GB300 Grace Blackwell Ultra systems and is set to expand production to the next-generation Vera Rubin platform.
Despite the recent share price drop, Wistron has seen a 23% increase in its stock value this year, with reported revenue of NT$895.4 billion and a profit after tax of NT$14.8 billion for the second quarter