Semiconductor co Onto Innovation dips on $1.1 bln convertible offering

Rigaku Holdings

18/05/2026 14:17

** Semiconductor equipment and testing firm Onto Innovation ONTO.N shares down 1% before the bell to $269 after capital raise news

** Wilmington, Massachusetts-based ONTO offering privately $1.1 bln convertible bonds (CBs) due 2031

** Co intends to use net offering proceeds for general purposes, including financing 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 proceeds to fund capped call transactions, derivatives used to mitigate dilution, and up to approx $300 mln to repurchase its shares to facilitate hedging transactions by investors in the CBs

** ONTO shares up 72% YTD through Fri close for ~$13.5 bln market cap

** 7 of 8 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT of $350 up from $325 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))