NVIDIA SUPPLIER WISTRON SHEDS 6% AFTER A $1.47B SHARE SALE

🔴 $1.47 billion of new stock, priced at a discount, and Wistron fell more than 6% in a day.

CNBC reports the Taiwanese Nvidia supplier priced 25 million global depositary receipts at $58.88 each on Monday, per a company filing.

That's about NT$186.24 a share. Roughly a 5.5% discount to Monday's NT$197 close.

The offering creates 250 million new common shares, around 7.29% of the count before the issuance. It is expected to be issued Thursday.

Where the money goes is the part worth reading twice. Wistron said the proceeds are earmarked for purchases of raw materials in foreign currencies. Not plants. Inputs.

The plants are already funded. Last month the company approved NT$10.5 billion in additional capital expenditure in Taiwan, plus a combined $53 million for two U.S. subsidiaries to support future AI business expansion.

In July it opened its first U.S. manufacturing facility, a $700 million AI server plant in Fort Worth, Texas. It currently builds Nvidia's GB300 Grace Blackwell Ultra systems and is expected to expand into the next-generation Vera Rubin platform.

The business itself is not small. Second quarter revenue came in at NT$895.4 billion with profit after tax of NT$14.8 billion.

And even after Tuesday, the shares are up about 23% so far this year.

Would you hold through a 7.29% dilution to fund an AI supply chain?

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