Silicon Motion down premarket after boosted $1 bln convertible bond sale
BUZZ-Silicon Motion down premarket after boosted $1 bln convertible bond sale ** Shares of Taiwanese chipmaker Silicon Motion Technology SIMO.O down 0.5% at $229.50 before the bell after above-target raise
** SIMO, designer of NAND flash controllers for solid-state storage devices, late Mon announced pricing private offering of $1 bln 0% convertible bonds (CBs) due Aug 15, 2031
** Initial conversion price of $380.50 is 65% premium to stock's last close of $230.61
** Shares fell 10% on Mon after co launched $800 mln offering for general purposes and to repay outstanding credit facility
** At Mon close, shares have surged 149% YTD following 72% gain in 2025
** 11 of 12 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT of $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))
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