UMC Prices $1.8B Convertible Bond at 0% Coupon with 2.34% Dilution
UMC has more than doubled off its 52-week low of $6.97.
Summary
UMC priced its US$1.8 billion convertible bond offering at a 0% coupon with conversion premiums of 17.5%–32.5% above the reference price, implying only ~2.34% dilution if fully converted.
Key Events · Financing and Capital Events · UMC
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US$1.8B Convertible Bond Priced
UMC priced its 7th overseas convertible bond at US$1.8 billion total, split evenly between Tranche A (US$900M) and Tranche B (US$900M), with issue date October 13, 2026.
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0% Coupon with Negative Yields
Both tranches carry a 0% coupon. Tranche A redeems at a -0.25% annual yield and Tranche B at -1.35%, meaning UMC effectively borrows at negative interest rates.
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Conversion Premiums of 17.5%–32.5%
Tranche A converts at NT$202.06 (132.5% of the NT$152.50 reference price) and Tranche B at NT$179.19 (117.5%), reflecting strong demand for UMC's equity-linked paper.
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Dilution Limited to ~2.34%
If all bonds are fully converted at initial conversion prices, the share dilution effect on original shareholders' equity is approximately 2.34%.
Analysis · UMC · Manufacturing
UMC finalized pricing for its seventh overseas convertible bond offering, locking in US$1.8 billion across two tranches with a 0% coupon and negative yields — effectively getting paid to borrow. The conversion premiums of 32.5% and 17.5% above the NT$152.50 reference price reflect strong institutional demand for the semiconductor foundry's paper. If fully converted, dilution is limited to approximately 2.34%, a modest overhang given the company's scale. Proceeds fund equipment and plant construction, supporting capacity expansion amid surging revenue growth.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 29.2% of the 1466 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, UMC was trading at $23.90 on NYSE in the Manufacturing sector, with a market capitalization of approximately $63.7B. The 52-week trading range was $6.97 to $28.96. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.