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Taiwan’s Wistron Targets Up to $923 Million in Luxembourg Share Sale

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Taiwanese electronics manufacturer Wistron Corp is aiming to raise up to $923 million through the sale of global depository shares (GDS), according to a term sheet reviewed by Reuters. The GDS will be listed in Luxembourg, and trading is scheduled to begin on June 16.

Wistron, a key supplier to Nvidia, plans to issue up to 250 million depository shares priced between $36.20 and $36.93 each. This pricing represents a 4% to 6% discount compared to Wistron’s closing stock price of NT$115 ($3.85) on Thursday.

The company has not issued a public statement regarding the offering as of now. According to the term sheet, proceeds from the share sale will primarily be used to purchase raw materials denominated in foreign currencies—reflecting Wistron’s strategy to better manage currency risks tied to its international supply chain operations.

Expanding U.S. Presence for AI and High-Performance Computing

Wistron’s fundraising comes as it expands its operations to meet surging demand in the high-performance computing and AI sectors. Last month, the company announced that its new U.S. manufacturing facilities—being prepared for customer Nvidia—are expected to be operational next year. The facilities will focus on producing AI-related hardware and high-performance computing products.

The move aligns with Nvidia’s rapid growth in AI-driven technologies, as well as a broader industry shift toward more diversified and localized manufacturing capabilities, particularly in response to global supply chain disruptions.

Additionally, Wistron disclosed that it is actively engaged in discussions with other potential customers to expand its client base in these rapidly growing technology sectors.

Strategic Capital Raising Amid Currency Volatility

By raising funds through the GDS offering in Luxembourg, Wistron is diversifying its capital sources while also mitigating currency fluctuation risks. The global nature of its customer and supplier relationships makes access to foreign currency-denominated funds increasingly critical.

The GDS structure also allows Wistron to tap into a broader pool of international investors, while enhancing its financial flexibility to support ongoing expansion efforts in both manufacturing capacity and technological innovation.

Xiaomi Raises $5.5 Billion in Share Sale to Accelerate EV Plans

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Xiaomi Corp, the world’s third-largest smartphone maker, announced on Tuesday that it raised $5.5 billion in an upsized share sale as the company ramps up its electric vehicle (EV) manufacturing plans. The company sold 800 million shares at a price of HK$53.25 each, according to a statement to the Hong Kong Stock Exchange.

Originally planning to sell 750 million shares, Xiaomi decided to increase the size of the offering due to strong investor interest during the bookbuilding process. The final share price, which was at the lower end of the HK$52.80 to HK$54.60 price range, represented a 6.6% discount to Xiaomi’s closing price of HK$57 on Monday.

Investor enthusiasm for Xiaomi’s EV plans has played a significant role in the company’s stock performance, with its share price surging nearly 150% from HK$21.5 in the past six months. The sale attracted over 200 investors, with the book being oversubscribed multiple times. The top 20 investors purchased about 66% of the stock offered.

The funds raised will be used to further accelerate Xiaomi’s business expansion and invest in research and technology development, particularly in the EV sector. Xiaomi entered the electric vehicle market last year with the launch of the SU7 sedan. The company reported a 50% jump in fourth-quarter revenue and raised its target for EV deliveries this year to 350,000, up from 300,000.

Xiaomi’s EV business generated 32.1 billion yuan ($4.4 billion) in revenue in 2024, delivering more than 135,000 SU7 sedans. The company plans to start shipping cars overseas in 2027 and is expanding its production capabilities with a new land purchase for its auto factory in Beijing.

In addition to its EV ambitions, Xiaomi is also focusing on AI, planning to allocate 7-8 billion yuan out of its 2025 total R&D budget of 30 billion yuan to AI development. The share sale comes amid a wave of tech-focused capital raisings from Chinese companies, as positive sentiment around the tech sector grows, partly fueled by easing government scrutiny.

OpenAI Plans Transition to Public Benefit Corporation: What It Means

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OpenAI announced on Friday that it plans to transition its for-profit arm into a Delaware public benefit corporation (PBC), aiming to raise capital while staying competitive in the fast-paced and costly AI race against companies like Google. This shift aims to create a more investor-friendly structure while maintaining OpenAI’s commitment to supporting charitable initiatives.

What is a Public Benefit Corporation (PBC)?

A PBC is a for-profit entity that is legally obligated to pursue one or more public benefits, such as social or environmental goals, alongside its financial objectives. Delaware introduced PBCs in 2013, and as of December 2023, 19 publicly traded PBCs exist.

OpenAI’s current structure is described as a for-profit entity controlled by a non-profit organization, with capped profits for investors and employees. Under the new structure, the non-profit will own shares in the for-profit arm, which will continue to fund the non-profit’s charitable mission, focusing on areas like healthcare, education, and science.

Key Differences Between PBCs and Other Corporate Structures

While both PBCs and traditional corporations are for-profit, PBCs must legally pursue public benefits. Unlike non-profits, which reinvest profits into their mission and are tax-exempt, PBCs are not eligible for special tax exemptions. However, PBCs must report on their progress towards their goals, with shareholders holding significant sway over the company’s alignment with its mission.

Limitations of PBCs

Choosing the PBC structure doesn’t guarantee that a company will prioritize its social mission over profit. While the law requires the board to balance profit-making with its mission, the law does not enforce the mission’s prioritization. Critics argue that publicly traded PBCs may be more vulnerable to takeovers since their public benefit goals could be seen as conflicting with profit-maximizing interests.

Other Companies with the PBC Structure

Rivals such as Anthropic and Elon Musk’s xAI have adopted the PBC structure, as well as other companies like Allbirds, Kickstarter, Patagonia, and Warby Parker. These companies blend social or environmental goals with their business models to appeal to socially-conscious consumers and investors.