TAIPEI (TVBS News) — The Hon Hai Technology Group (鴻海), as known as Foxconn, announced on Friday (Oct. 18) the pricing completion for its first overseas unsecured convertible bonds of 2024, set to issue on Oct. 24. The total issuance amounts to US$700 million, with a maturity date of Oct. 24, 2029, on the Singapore Exchange (SGX, 新加坡交易所).
Bondholders can apply to convert these bonds into newly issued common shares at a conversion price of NT$300 per share during the conversion period, Foxconn stated. With the mid-day stock price at NT$209, the conversion price carries a premium of 43.5%. Market analysts believe this premium indicates investors' confidence in Foxconn's long-term stock price reaching NT$300.
Foxconn plans to use the funds primarily to support overseas material purchases, aiming to reduce interest expenses. The company noted that if all the overseas unsecured convertible bonds are converted this year, the capital dilution rate will be approximately 0.54%, which would have a limited effect on existing shareholders' equity.