川湖科技 Plans NT$10 Billion Bond Sale for Factory Expansion

川湖科技 (2059) plans to raise up to NT$10 billion through two five-year convertible bond offerings to fund an investment in subsidiary 川益科技 for new factories and equipment amid customer demand for server rails.

On Oct. 30, 川湖科技 announced plans to subscribe to all 750,000 ordinary shares in 川益科技’s cash offering at NT$14,000 per share. The NT$10.5 billion subscription would keep 川湖科技’s ownership of the subsidiary at 100%.

The investment would support construction of 川益科技’s third and fifth factories and the purchase of equipment. The estimated value of the factory construction contracts is about NT$11.733 billion.

The third bond offering is capped at NT$9 billion and would be placed through bookbuilding. The fourth is capped at NT$1 billion and would be sold by public auction, with a reserve price of 105% of face value. Both offerings would be unsecured, have five-year terms and carry coupon rates of 0%.

川益科技’s factory expansion responds to long-term demand visibility among downstream customers. Separately, some next-generation water-cooled and AI-cluster cabinets can carry loads exceeding 1.5 metric tons per cabinet. Those heavier loads raise requirements for structural tolerances, load-bearing rigidity and resistance to deformation in server rails.

川湖科技 began with precision furniture slides and entered the server-rail market in the 2000s. It established 川益科技 in 2007 at the Luzhu site of Kaohsiung Science Park.