Semiconductor co Amkor slips after $1 bln convertible bond sale

Amkor Technology

01/05/2026 13:14

** Amkor Technology's AMKR.O shares down 1.1% before the bell to $69 after securing capital raise

** Semiconductor packaging and test services provider late Thurs announced pricing private offering of $1 bln 0% 5-yr convertible bonds

** Initial conversion price of $106.37 is a 52.5% premium to stock's last close of $69.75

** Co intends to use net offering proceeds for general corporate purposes, including capex

** It also plans to use $49 mln of proceeds to fund capped call transactions to mitigate potential dilution; initial cap price of $139.50 is double the stock's last close

** Tempe, Arizona-based AMKR has roughly $17 bln market cap

** Through Thurs, AMKR's stock up 77% YTD including 55% surge in Apr. Stock hit record intraday high of $79.23 on Mon

** In Feb, members of the Kim family and Susan Kim, AMKR's board chairman, cut their stakes in 10 mln share secondary offering priced at $48.75

** Avg rating of 12 analysts is "hold"; median PT $69, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))