Laptop, cloud gear maker Quanta prices $2.16 billion share sale in Taiwan’s record GDS deal

Quanta Computer has priced a $2.16 billion sale of global depositary shares (GDS), the Taiwanese laptop and cloud equipment maker said in a stock exchange filing ‌on Thursday, ⁠in ⁠what is Taiwan’s biggest GDS sale ever.

Quanta priced 49 million GDS at $44.17 each, raising a total of $2.16 billion.

Term sheet seen by Reuters on Wednesday showed the company was offering the GDS, each representing five ordinary shares, in a price range of $43.91 to $44.77 each. The deal is comprised of 245 ⁠million new ‌shares.

The sale would be Taiwan’s largest GDR or GDS offering on record, surpassing Innolux Display’s $1.35 billion ⁠GDR sale in 2007, LSEG data showed.

Quanta said the sale price equals about T$287.06 ($8.83) per share, based on an exchange rate of T$32.495 to the U.S. dollar. The shares will be listed in Luxembourg.

It added that it will use the money to fund purchases of materials in foreign currencies.

The new shares ‌will dilute existing shareholders’ ownership by about 5.97%, Quanta said, adding that the sale would not have a material effect on shareholder ⁠rights.

Quanta’s shares dropped 9.9% on Thursday. They have risen 2.6% so far this year, trailing a 37.9% gain in Taiwan’s benchmark index.

Taiwanese technology stocks have recently come under pressure in a regional selloff tied to concerns about the durability of the artificial intelligence boom.