Key Takeaways
- • Gigabyte Technology plans to raise about $530 million through a sale of global depositary shares, according to a term sheet seen by Reuters.
- • The offering comprises 25 million depositary shares priced at $20.92 to $21.36 each, representing 50 million new ordinary shares.
- • The price range represents a 4.5% to 6.5% discount to Wednesday's closing price of T$362.50 ($11.18).
- • Citigroup is sole global coordinator and joint bookrunner on the transaction.
- • Proceeds will be used to purchase raw materials priced in foreign currencies.
Summary
The offering consists of 25 million depositary shares, each priced between $20.92 and $21.36. Each depositary share represents two new ordinary shares, so the deal would issue 50 million new ordinary shares in total. The indicated price range sits at a 4.5% to 6.5% discount to Wednesday's closing price of T$362.50, equivalent to $11.18.
The company intends to use the proceeds to buy raw materials priced in foreign currencies, a funding objective that suggests a hedge against currency-denominated input costs. Citigroup C.N is the sole global coordinator and joint bookrunner for the transaction.
The term sheet details are preliminary as reported, and final pricing and size may change before the offering is completed.
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