Hon Hai Precision Industry Co (鴻海精密), the world’s biggest contract server maker, yesterday said the conversion price of its overseas bonds are set at NT$300 a share, representing a premium of 43.8 percent compared with the closing price of NT$208.5 on Thursday.
The company has raised US$700 million through the corporate bond offering, according to a company filing with the Taiwan Stock Exchange yesterday.
The convertible bonds were issued with a par value of US$200,000 and carry a zero coupon rate.
Photo: Ritchie B. Tongo, EPA-EFE
Hon Hai plans to use the proceeds to fund its raw material purchases from overseas, the filing said.
The issuance of the convertible bonds can cut interest costs, it said.
Hon Hai said the new bond issuance would have a very limited dilution effect, at about 0.54 percent, if all the bonds are converted to stock. The dilution effect should have a limited effect on existing shareholders’ rights, the company said in the filing.
The bonds are to be listed on the Singapore Exchange on Thursday next week with maturity date of Oct. 24, 2029, for bondholders to convert the bonds into common shares.
Prior to Hon Hai, Quanta Computer Inc (廣達), a server and notebook computer maker, and Wiwynn Corp (緯穎), a developer and manufacturer of artificial intelligence (AI) servers, also issued convertible bonds as a way to save interest costs.
Quanta last month raised US$1 billion through issuing convertible bonds overseas, while Wiwynn raised US$600 million to cope with increases in raw material purchases overseas due to expensive components used in AI servers.
Both companies’ bonds have a premium.
HSBC Holdings PLC is deepening its commitment to Taiwan as the economy emerges as one of the bank’s fastest-growing markets globally, driven by an artificial intelligence (AI) investment boom, expanding cross-border trade, and rising wealth creation. “The advantage that Taiwan has is a growth story linked to the semiconductor and broader AI industries, strong underlying corporate performance, and wealth creation,” said Surendra Rosha, HSBC’s co-chief executive for Asia and the Middle East, in an exclusive interview with the Taipei Times on June 2, during this year’s HSBC Taiwan Conference. That combination has helped HSBC cement its position as the most profitable international
The New Taiwan dollar yesterday fell sharply against the US dollar to close at its lowest level since May 22 amid a massive outflow of funds from the country because of investors panicking over global equity markets. The NT dollar ended at NT$31.580 against the US dollar, slightly lower than its close of NT$31.568 on May 22, after moving between NT$31.5 and NT$31.648 on combined turnover of US$3.062 billion on the Taipei Foreign Exchange and the Cosmos Foreign Exchange. The NT dollar received a significant hit in the morning session, slumping as much as NT$0.173 at a time when other Asian currencies
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is now ranked ninth among the world’s 100 most valuable companies after its market capitalization more than doubled over the past year, PricewaterhouseCoopers (PwC) Taiwan said in a report last month. TSMC’s market capitalization surged 101 percent year-on-year to US$1.427 trillion as of March 31, the accounting and consulting firm’s 2026 Global Top 100 Companies by Market Capitalization report said. The gain catapulted the world’s largest contract chipmaker from 12th place to ninth in the rankings, and it was the fastest-growing among the global top 10, it said. TSMC was the only Taiwanese company among the top
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported record revenue of NT$416.975 billion (US$13.17 billion) for last month, putting the world’s largest contract chipmaker on track to set a record for quarterly revenue. Last month’s figure surpassed March’s record NT$415.19 billion and represented increases of 1.5 percent from April and 30.1 percent from a year earlier. For the first five months of the year, TSMC generated NT$1.96 trillion in revenue, up 30 percent year-on-year, it said in a statement. TSMC has forecast second-quarter revenue of between US$39 billion and US$40.2 billion, representing sequential growth of about 10 percent and year-on-year growth of about
RSS