Wistron Shares Fall 6% After $1.5 Billion Stock Sale

Shares of Taiwanese supplier Wistron Corporation fell by more than 6% on Tuesday following the pricing of a $1.47 billion global depositary receipt offering. The capital raise is intended to fund purchases of raw materials in foreign currencies as the Nvidia server maker expands its manufacturing footprint.

According to a company regulatory filing released Monday, Wistron priced 25 million global depositary receipts at $58.88 each. The offering corresponds to 250 million new common shares priced at approximately 186.24 New Taiwan dollars per share. This represents a discount of roughly 5.5% compared to Wistron’s closing price of NT$197 on Monday. The newly created equity accounts for about 7.29% of the company’s outstanding shares prior to the issuance, with official distribution planned for Thursday.

Capital Expenditure and Global Production

The proceeds from the stock sale are designated for purchasing foreign-currency raw materials necessary to support Wistron’s growing artificial intelligence server operations. The fundraising follows several capital investments approved by the company’s board in August.

Wistron recently committed NT$10.5 billion in additional capital expenditure for its facilities in Taiwan. In addition, the firm allocated $53 million combined to two of its U.S. subsidiaries to expand its domestic AI hardware infrastructure.

The expansion in North America follows the opening of Wistron’s first U.S. manufacturing facility in July. The $700 million plant, located in Fort Worth, Texas, currently builds Nvidia’s GB300 Grace Blackwell Ultra systems. Wistron plans to eventually utilize the facility to produce Nvidia’s next-generation Vera Rubin platform.

Quarterly Results

The global share offering coincides with recent second-quarter financial reports from the firm. Wistron posted revenue of NT$895.4 billion for the period, alongside a net profit after tax of NT$14.8 billion.

Background

Wistron Corporation is a primary Taiwanese manufacturer of server hardware and electronic components, serving as a key production partner for global semiconductor designers including Nvidia. Global depositary receipts allow companies to raise equity funding from international investors outside of their home market listing.