Wistron Stock Drops After $1.47 Billion Share Sale Priced at a Discount
Wistron Corporation's stock fell more than 6% on Tuesday following the pricing of its $1.47 billion global depositary receipt (GDR) offering, which was set below the previous day’s closing price. The company issued 25 million GDRs at $58.88 each—equivalent to NT$186.24 per underlying share—which is a 5.5% discount compared to Monday's close of NT$197. This offering accounts for roughly 7.29% of the company’s total shares, and Wistron stated it does not expect significant dilution. The funds from the sale will be used primarily for foreign-currency procurement of raw materials as part of its expansion in AI server manufacturing. The firm recently opened a $700 million plant in Texas to produce servers for clients like Nvidia and has also approved additional capital spending in both Taiwan and U.S. subsidiaries to support growth. Despite the recent drop, Wistron's stock is up about 23% this year amid strong demand from hyperscalers and enterprise customers for its AI server products.
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Topics: AI server expansion global share sale stock price decline