Silicon Motion down premarket after boosted $1 bln convertible bond sale

Shares of Taiwanese chipmaker Silicon Motion Technology SIMO.O were down 0.5% at $229.50 before the bell after an above-target raise.

SIMO, designer of NAND flash controllers for solid-state storage devices, late Monday announced pricing of a private offering of $1 billion of 0% convertible bonds due Aug. 15, 2031.

The initial conversion price of $380.50 is a 65% premium to the stock's last close of $230.61.

Shares fell 10% on Monday after the company launched an $800 million offering for general purposes and to repay an outstanding credit facility.

At Monday's close, shares had surged 149% year to date following a 72% gain in 2025.

Eleven of 12 analysts rate the stock "strong buy" or "buy" and one rates it "hold"; the median price target is $350, according to LSEG data.