Quanta Plans to Raise $22 Billion via GDS, Stock Plummets

According to foreign media reports, Quanta (2382-TW) plans to raise up to $22 billion (approximately NT$712 billion) through the issuance of Global Depositary Shares (GDS) to meet strong demand. However, market concerns over excessive investment in AI have made the fundraising a negative news item, causing the stock price to plummet to the circuit breaker of 279 yuan, breaking the year-line, and reaching a four-month low.

Quanta opened low at 288 yuan this morning, touching the circuit breaker price of 279 yuan during trading, although it did not lock in. The stock price remained weak, and as of 10:40 AM, the stock price was temporarily reported at 279.5 yuan, approaching the circuit breaker, breaking all moving averages, and trading volume exceeded 41,000 units. However, the three major institutions did not reduce their holdings in Quanta, buying more for two consecutive trading days, with a total buying excess of 4,271 units.

According to foreign media reports, Quanta plans to raise up to $22 billion through the issuance of GDS, with the issuance price ranging from $43.91 to $44.77. This is the largest stock issuance case in Taiwan in nearly 20 years. The market points out that Quanta's fundraising is mainly for the purchase of raw materials and to meet production needs. The fundraising amount of approximately NT$712 billion is almost twice Quanta's paid-in capital of NT$386.26 billion.

Quanta's board of directors recently also resolved to acquire land and buildings in Taoyuan Guishan, with a total transaction amount of approximately NT$19.7 billion. The land area is approximately 19,700 ping, and the building area is approximately 49,300 ping, mainly to meet operational needs.

The 'Electronics Five Brothers' have recently raised their capital expenditures in response to the booming demand for AI. Quanta's capital expenditure in the first quarter was NT$8.1 billion, with a target of NT$30 billion for this year; Wistron (3231-TW) has a capital expenditure of NT$60 billion this year, with the scale possibly increasing next year; Inventec (2356-TW) has significantly increased its capital expenditure this year to $1 billion (approximately NT$32 billion).

Additionally, Pegatron (2324-TW) has also raised its capital expenditure for this year to NT$18 billion, doubling from last year; and Acer (4938-TW) has a capital expenditure of $3 to $3.5 billion (approximately NT$9.7 to NT$11.4 billion) this year, and does not rule out an increase.