Wiwynn closes limit-up before ex-rights trading begins
Wiwynn Corp. (6669), an AI server manufacturer, saw its final trading day before going ex-rights on Sept. 1. The stock finished at the daily limit of NT$7,800, setting a new all-time high. The company is issuing stock dividends through retained earnings capitalization, with shareholders set to receive about 1.98279 shares for each share held. Based on that formula, the ex-rights opening reference price for Sept. 2 is estimated at about NT$2,615.
The report said the one-day price band after the adjustment would range from NT$2,355 to NT$2,875.
New shares are expected to arrive after a waiting period of about one month
ABMedia said stock dividends follow a different process from cash dividends. After the company finalizes the shareholder register on the ex-rights record date, it still has to apply to the Department of Commerce Development under the Ministry of Economic Affairs for a capital change registration and then apply to the Taiwan Stock Exchange for the new shares to be listed for trading.
That process takes about one month. During that window, existing shareholders have not yet received their allotted new shares, while the market price has already adjusted to reflect the ex-rights level. According to the report, the new shares are expected to be credited to shareholder accounts between late September and mid-October.
Existing holders can still trade, while short balances expand proportionally
In trading practice, investors holding the original shares can place orders freely starting the next day after ex-rights without affecting their entitlement to the new shares.
For short sellers using stock borrowing, the borrowed share balance will expand proportionally to about 2.983 times. The report added that if the stock keeps rising after ex-rights, short positions could face margin calls.
Tradable supply drops to about one-third before the new shares are delivered
During the transition from the ex-rights date to the formal issuance of the new shares, only about one-third of the original shares remain available for matching in the market, creating a real tightening in liquidity.
ABMedia said shareholder depository accounts will show only the post-ex-rights share price and the original share count during that period, causing a temporary drop in book value. The total value returns to a complete level only after the capitalized shares are deposited. With supply constrained, short-term price quotes become more sensitive to shifts in buy and sell orders.
Century offers a reference case, but the trading structure is different
The article compared Wiwynn with Century (5314), which went ex-rights in mid-August with an allotment ratio of 315.7%. Century’s share price dropped from NT$61.3 to NT$14.75 after the adjustment and later posted a strong ex-rights recovery with consecutive limit-up sessions as tradable supply stayed extremely tight.
ABMedia said Wiwynn shares some of the same features, especially the limited float in the early ex-rights period. Still, Wiwynn’s post-ex-rights price remains in a high-priced range at NT$2,615, and its trading base is led by professional institutions and foreign investors. The report said price formation in Wiwynn is more closely tied to fundamentals in the server industry, making it structurally different from smaller stocks that are driven more heavily by retail participation.
The report said any follow-through in Wiwynn’s ex-rights recovery will depend on fundamentals and institutional capital allocation.