Nvidia supplier Wistron's shares drop after it announces $1.5 billion global stock sale

Shares of Taiwan's Wistron Corporation fell more than 6% Tuesday after the Nvidia supplier priced a $1.47 billion global depositary receipt offering to fund raw material purchases. The company said Monday that it priced 25 million global depositary receipts at $58.88 each, representing 250 million new common shares, according to a company filing. The shares were priced at about $186.24 new Taiwan dollars each, roughly a 5.5% discount to Wistron's Monday closing price of NT$197. The new shares represent about 7.29% of Wistron's outstanding shares before the issuance. Wistron said the offering is expected to be issued on Thursday, with the proceeds earmarked for purchases of raw materials in foreign currencies. The company's shares are up about 23% so far this year. The fundraising comes as Wistron expands its AI server business, with the company approving additional capacity investments in Taiwan and the U.S. last month. Wistron approved NT$10.5 billion in additional capital expenditure for facilities in Taiwan, as well as a combined $53 million for two U.S. subsidiaries to support future AI business expansion. In July, Wistron opened its first U.S. manufacturing facility, a $700 million AI server plant in Fort Worth, Texas. The facility currently produces Nvidia's GB300 Grace Blackwell Ultra systems and is expected to expand production to its next-generation Vera Rubin platform. For the second quarter, Wistron reported revenue of NT$895.4 billion and profit after tax of NT$14.8 billion.