Chipmaker SiTime falls on planned $1.1 bln convertible bond sale

Renesas Electronics

19/05/2026 13:03

** Shares of precision timing chipmaker SiTime SITM.O down 6% to $682.40 in premarket trading on Tues as it seeks capital raise

** Santa Clara, California-based SITM announces public offering of $1.1 bln convertible bonds due 2031

** It expects to use net offering proceeds to pay portion of cash consideration for acquisition of Renesas Electronics' timing business

** On Feb 4, SITM unveiled $1.5 bln cash and stock deal worth up to $3.2 bln with Japan's Renesas 6723.T

** SITM also plans to use proceeds to pay cost of capped call transactions to mitigate potential dilution, any remainder for general purposes

** Wells Fargo, Goldman Sachs, Barclays, UBS and Morgan Stanley joint bookrunners

** Co has ~26.4 mln shares outstanding for $19 bln market cap

** Through Mon, shares have surged 110% this quarter

** All 10 analysts are bullish on the stock; median PT of $812.50 up from $450 a month ago, per LSEG data

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

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