Wistron (3231) has completed the pricing of its global depositary receipt, or GDR, offering, with total proceeds set at $1.472 billion. In a material disclosure posted on Sept. 7, the company said the capital raise will involve 250 million newly issued common shares for the GDR deal. Wistron’s stock closed down 5.33% on Sept. 8 after the announcement.
Deal size and pricing terms
Under the announced terms, Wistron will issue 25 million GDR units, with each unit priced at $58.88. Each unit represents 10 common shares, bringing the total represented shares to 250 million.
The pricing date was Sept. 7, and the planned issuance date is Sept. 10. The securities will be issued and traded on the Luxembourg Stock Exchange.
Implied share price and discount
The filing used an exchange rate of NT$31.631 per U.S. dollar. Based on that rate, the implied price per common share comes to about NT$186.24.
Wistron’s stock closed at NT$197 on Sept. 7. That puts the implied GDR price at a discount of roughly 5.5% to the previous day’s close.
Sept. 8 trading session
The pricing news was released after 11 p.m. on Sept. 7. On Sept. 8, Wistron opened at NT$189, fell to an intraday low of NT$182.5, and closed at NT$186.5. That was down NT$10.5, or 5.33%, from the previous trading day.
Use of proceeds and dilution
The company said the funds raised will be used to support demand for foreign-currency purchases of materials.
Wistron said the issuance of 250 million common shares for the GDR would lead to dilution of about 7.29%, while adding that it would not materially dilute shareholder equity.
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