Gigabyte prices $526M GDR to fund AI-server supply chain
What's the deal? GIGABYTEDealroom has a profile for this one. Try Dealroom → priced 25 million global depositary receipts (GDRs) at $21.05 each on October 28, raising about $526 million in a post-IPO equity offering. The Taiwanese hardware maker will use proceeds to buy overseas components in foreign currency. The GDRs list on the Luxembourg Stock ExchangeDealroom has a profile for this one. Try Dealroom → on November 2.
The fine print: The receipts represent 50 million new common shares, or roughly 6.95% dilution. Gigabyte said the issue would not materially dilute existing shareholders.
Why now? AI-server orders are surging, and Gigabyte needs cash to fund inventory and procurement. September revenue hit a record US$1.83B, up 125% year over year, with AI-server sales reportedly topping US$1.45B that month.
By the numbers: Second-quarter net profit reached a record US$191.3M, up 116.6% from a year earlier, while first-half revenue climbed 48.4% to US$7.22B. The board has raised full-year capital expenditure guidance to US$81.1M–US$86.8M to expand AI-server capacity.
What could go wrong? Rapid growth is tying up cash: days of inventory rose to 164.1 in the second quarter from 142.6 in the first. The dilution is a trade-off for securing supply and keeping shipments moving.
The signal: The raise sits in the 95th percentile for post-IPO equity rounds among Taiwanese gaming companies over the past four years, but it is less an outlier than a pattern. Wistron raised about $1.47 billion and Quanta roughly $2.2 billion through comparable GDRs, evidence that AI-server demand is forcing Taiwan's suppliers to lock up substantial working capital.
Read more: tokenpost.com
Image credit: Generated with Gemini
