News Article
AXT raises over $630m to increase InP capacity
Public offering results in over 5000% surge in 52 week share price
A week ago, the compound semiconductor wafer company AXT announced its intention to sell shares of common stock in a public offering to support AXT's subsidiary Beijing Tongmei Xtal Technology's efforts to increase InP substrate capacity.
Since then the company has raised around $632.5m gross and boosted its share price by over 5000 percent compared to price a year ago ($1.23). At the time of writing the share price is $69.24.
AXT closed the underwritten public offering of 8,560,311 shares at $64.25 per share on the 22nd April, with total gross proceeds of around $550 million (before deducting underwriting discounts and other offering expenses). Following this, AXT granted the underwriter a 30-day option to purchase up to 1,284,046 additional shares at the same price. This resulted in gross proceeds of approximately $82.5 million, before deducting expenses.
The high level of market interest reflects surging demand for InP substrates in AI and data centre applications. AXT says the increased InP capacity will be used for worldwide export, for R&D of new and improved products, and for working capital and other corporate purposes.
