Nova's US-listed shares drop after $500 mln convertible bond sale unveiled

Nova

02/09/2025 15:10

** U.S.-listed shares of Israeli semiconductor firm Nova NVMI.O down 7.4% to $243.91 early Tues as it looks to raise capital

** Co, which provides measuring systems for the semiconductor manufacturing industry, early Tues announced private offering of $500 mln 0% 5-yr convertible bonds (CBs)

** It said plans to use net proceeds for general purposes, including potential M&A, business development, and development of new products and technologies

** NVMI also intends to use portion of proceeds to pay costs of capped calls, derivative transactions employed to offset dilution

** Through Fri close, NVMI shares had about $7.7 bln market cap

** With move on Tues, shares up 24% YTD

** 6 of 7 analysts rate shares "strong buy" or "buy", 1 rates "hold"; median PT of $300 up from $270 a month ago and from $250 on Jun 2, LSEG data reflects

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

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