Taiwan's Wistron launches $1.5 billion GDS sale to fund raw material purchases
QQQ•AI demand and expansion plans support fundraising needs
Taiwanese tech firms are turning to international investors for fresh funding as global AI spending lifts demand across the hardware supply chain, from servers to electronic components.
Taiwanese server manufacturer Wistron has approved extra spending to expand production capacity in Taiwan and opened a $700 million plant in Texas in July to manufacture Nvidia's latest AI systems.
The company did not immediately respond to a request for comment on its GDS offering, which is expected to be priced later on Monday and follows WT Microelectronics last week raising $935 million in a share and convertible bond sale.
Wistron said in August that AI server demand from cloud computing firms and business customers continued to exceed supply. Its second-quarter net profit rose 128% from a year earlier, while revenue climbed 64%.
Wistron's shares closed 0.5% lower on Monday, but have climbed 30% year-to-date.
Wistron launches GDS offering to raise up to $1.48 billion
HONG KONG/TAIPEI, Sept 7 (Reuters) - Nvidia NVDA.O supplier Wistron Corp 3231.TW has launched an offering of 25 million global depositary shares, worth up to $1.48 billion, to fund purchases of raw materials in foreign currencies, a term sheet seen by Reuters on Monday showed.
Wistron is offering the GDS, each representing 10 common shares, at $58.67 to $59.79 per share, the sheet showed. The range is a 4% to 5.8% discount to Monday's closing Wistron price of T$197 ($6.25).
