Nvidia supplier Unimicron seeks US$1.4 billion share sale amid AI boom

[TAIPEI] Unimicron Technology is seeking as much as US$1.4 billion from a sale of global depositary shares, according to terms of the deal seen by Bloomberg News, capitalising on an artificial-intelligence frenzy that has lifted the Taiwanese chip supplier’s stock more than 700 per cent over the past 12 months.

Unimicron, which counts Apple and Nvidia as customers, is selling 50 million global depositary shares at US$26.96 to US$27.76 each, the terms show, which is a 3-to-6 per cent discount to its NT$917 (US$28.59) close on Monday (Jul 6). The company plans to use the proceeds to procure raw materials in foreign currencies.

Unimicron makes printed circuit boards, the intricate electronic backbone of AI servers. It also makes Ajinomoto build-up film substrate, a key part named after the eponymous MSG maker that is required for packaging to protect the chips needed to power computers or servers.

Unimicron, which dipped 5.4 per cent on Monday in Taipei, has a market capitalisation of about US$45 billion. Other companies seeking to cash in on investor enthusiasm for the AI boom include South Korea-based chipmaker SK Hynix, which is slated to list this week in the biggest-ever maiden share sale by a foreign company in the US.

Still, investors have recently turned cautious about the durability of the AI-driven rally, with the rebound for Asian technology stocks stalling on Monday.

Unimicron’s deal has a 90-day lockup for the company, certain directors and executive officers, as well as some major shareholders, the terms show. Citigroup is sole global coordinator, while Morgan Stanley is a joint bookrunner. BLOOMBERG