King Slide Technology (2059) on Oct. 30 announced a series of major resolutions, including what ABMedia described as the company’s biggest capital expenditure plan on record. The company said it will fully subscribe to a cash capital increase by its wholly owned subsidiary Chuan Yi Technology, totaling NT$10.5 billion, to fund construction of the subsidiary’s third and fifth plants and the purchase of equipment. At the parent level, King Slide also plans to issue its third and fourth domestic unsecured convertible bonds, with combined fundraising capped at NT$10 billion.
The report said the package reflects a faster push to expand rail manufacturing capacity as the company targets a much larger production footprint.
NT$10.5 billion equity injection into Chuan Yi
King Slide said it will subscribe to 750,000 newly issued common shares in Chuan Yi Technology at NT$14,000 per share, for a total of NT$10.5 billion. The transaction keeps the parent’s ownership in the subsidiary at 100%, with the proceeds earmarked for expansion of its Southern Taiwan Science Park manufacturing base.
Chuan Yi has already started expansion projects for its third and fifth plants. ABMedia said the estimated total value of contracts for the new plant construction alone is about NT$11.733 billion, pointing to a clear acceleration in capacity deployment.
Heavier AI racks are changing rail demand
King Slide started in precision furniture slides before moving into the server rail market in the 2000s. In 2007, it established Chuan Yi Technology in Luzhu, Kaohsiung Science Park, as the group’s main base for high-end precision manufacturing.
As global cloud service providers build out dense AI server infrastructure, rack design is shifting. The report said the market is moving from conventional server systems to next-generation liquid-cooled and AI cluster racks with single-rack loads of more than 1.5 tons. That has sharply raised requirements for structural tolerance, load-bearing rigidity and deformation resistance in rails. In that setting, rails are no longer treated as standardized metal components, but as high-margin precision parts with higher technical barriers.
ABMedia said King Slide holds a leading position in high-end AI rails through its global patent portfolio and customization capabilities.
Two 0% coupon convertible bond deals approved
To support the spending plan, King Slide approved two five-year unsecured convertible bond offerings, both carrying a 0% coupon rate.
- King Slide III: fundraising cap of NT$9 billion through book building.
- King Slide IV: fundraising cap of NT$1 billion through public auction, with a minimum issue price set at 105% of par.
According to the report, the first deal is aimed at life insurers, long-term investment trusts and large institutional investors, while the second is intended to broaden market participation and add to capital surplus.
Under this structure, King Slide would not bear any cash interest burden over the next five years, reducing the cash interest cost associated with traditional borrowing.
