Semiconductor firm Onto Innovation drops on $1.3 bln convertible offering

Onto Innovation

19/05/2026 11:59

** Shares of semiconductor equipment and testing firm Onto Innovation ONTO.N down 1.4% premarket to $251.01 after securing more capital than planned

** Wilmington, Massachusetts-based ONTO late Mon announced pricing private offering of $1.3 bln 0% convertible bonds (CBs) due 2031

** Initial conversion price of $381.80 represents 50% premium to stock's last close of $254.53

** ONTO stock finished down 6.3% on Mon after co announced $1.1 bln offering

** Co intends to use net offering proceeds to finance announced 27% acquisition of shares in Japanese X-Ray tech provider Rigaku 268A.T for about $710 mln from Atom Investment, an affiliate of Carlyle Group CG.O

** It also plans to use approx $71 mln to fund capped call transactions, and approx $205 mln to repurchase 0.8 mln of its shares to facilitate hedging transactions by investors in the CBs

** Through Mon, ONTO stock up 61% YTD. Stock hit intraday record high of $316 on Apr 24

** 7 of 8 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $350, per LSEG data

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

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