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Taiwan's Wistron Launches $1.5B GDS Sale to Buy Materials

HONG KONG/TAIPEI, Sept 7 (Reuters) - Nvidia supplier Wistron Corp ​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.

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.

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).

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.

($1 = 31.5000 Taiwan dollars)

Reporting by Yantoultra Ngui in Hong Kong and Wen-Yee ​Lee in Taipei; Editing by Joe Bavier and Alexander Smith

Source: Reuters


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