AXT Raises $87M Through Share Offering, Plans Substrate Production Expansion

Semiconductor wafer substrate manufacturer AXT, Inc. (AXTI) unveiled details of its equity capital raise on Monday, pricing approximately 7.10 million shares at $12.25 per share. The underwritten offering is anticipated to deliver gross proceeds around $87 million before accounting for underwriting fees and transaction costs, with closure targeted for late December.

The company has also granted underwriters the right to acquire an additional 1.06 million shares at the same price point. Should this overallotment option be fully exercised, total gross proceeds could reach approximately $100 million.

AXT outlined specific deployment plans for the capital raised. The primary focus will be enhancing manufacturing capacity at its subsidiary, Beijing Tongmei Xtal Technology, with emphasis on scaling up indium phosphide substrate production to meet global demand. These high-performance substrates are critical components in advanced semiconductor applications.

Beyond the production expansion initiative, the company intends to allocate remaining capital toward strengthening its research and development pipeline and addressing general corporate operational needs along with working capital requirements.

Market reaction was mixed, with AXTI stock trading down 15.42% at $13.01 in pre-market sessions on the Nasdaq, reflecting broader market dynamics surrounding the newly announced equity issuance.