Wistron's shareholders face immediate dilution after the company priced a $1.47 billion global depositary receipt offering, and the stock fell more than 6% on Tuesday. The deal will add a meaningful tranche of new shares and is aimed at funding purchases of raw materials denominated in foreign currencies.
The company set the offer at 25 million global depositary receipts, each sold for $58.88, a structure that converts to 250 million new common shares. Wistron said the new shares were effectively priced at NT$186.24 apiece, about a 5.5% discount to the Monday close of NT$197, and represent roughly 7.29% of the firm's outstanding stock before the issuance. The offering is expected to be issued on Thursday.
The market reaction reflected the dilution and the discount: Wistron's equity slipped on the announcement despite the stock having climbed about 23% so far this year. Management framed the fundraising as working capital for raw-material buys, a practical step as the company ramps manufacturing for AI server demand.
Wistron has been expanding its AI server business, approving NT$10.5 billion in additional capital expenditure for Taiwan facilities and committing a combined $53 million to two U.S. subsidiaries to support future growth. In July the firm opened its first U.S. manufacturing site, a $700 million AI server plant in Fort Worth, Texas, which currently builds Nvidia's GB300 Grace Blackwell Ultra systems and is slated to extend production to the next-generation Vera Rubin platform.
On the fundamentals front, Wistron reported second-quarter revenue of NT$895.4 billion and profit after tax of NT$14.8 billion. Investors will now watch how the company deploys the proceeds and whether the extra supply of shares depresses the stock further ahead of the planned issuance on Thursday.
