Reported 8 months ago
In response to the booming demand in the AI server market, Gigabyte's board of directors recently decided to proceed with overseas depositary receipts and overseas unsecured convertible corporate bonds, raising over NT$20 billion in total funding. The fundraising is mainly for regular inventory capital needs. Gigabyte plans to issue 32-38 million shares for cash issuance of common stock to participate in the issuance of overseas depositary receipts, estimated to dilute existing shareholders' equity by about 7%. With a market value of about NT$9.984-11.856 billion for this GDR issuance, Gigabyte also plans to issue a fourth unsecured convertible corporate bond worth up to $300 million (about NT$9.7 billion), tentatively in denominations of $200,000 or multiples, with a five-year maturity. Industry insiders believe that companies like Gigabyte, Wiwynn which recently announced ECB and GDR issuances, as well as Supermicro which recently carried out cash issuance, are all preparing ammunition to meet the growing demand for orders in the AI server business sector. Gigabyte has benefited from the increasing momentum in the AI server shipments, with monthly revenues surpassing NT$20 billion over the past three months. It is forecasted that Gigabyte's future AI server order visibility is clear, with stable shipping momentum, and the server business is expected to achieve double-digit growth beyond 5 billion Taiwan dollars this year after a strong increase by several times last year.
Source: YAHOO