Apple supplier AMS stocks dive after capital raise proposal


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Apple supplier AMS stocks dive after capital raise proposal

On Wednesday, the 13th of May 2020, shares’ prices of AMS AG, the Premstätten-based Austrian multinational manufacturer of sensors for small form factor, low-power and multi-sensor applications, widely known as a supplier to Apple Inc.’s iPhone, had nosedived as much as 11 per cent following reveal of a media headline that the Austrian sensor maker had been seeking authorization for a fresh capital raise, while on Thursday (May 14th), the Swiss Stock Exchange-listed AMS shares were trading 4.39 per cent lower to Swiss Franc 12.40 a share during late-afternoon trading after hitting a session low of 11.73 Swiss Franc per share in midday trading hours.

In point of fact, latest whiplash of the stocks of AMS, that supplies facial recognition technology for iPhones and has been well-poised to purchase the leading manufacturer of car headlamps, Osram at a $5 billion takeover deal, came forth as the company was reportedly seeking for stakeholders’ approval aimed at issuing convertible bonds which could be rendered in to 27.4 million new shares.

Nonetheless, the painful part for common shareholders has been the consequential repercussion of the pandemic outbreak alongside a higher level of debt-pile of the company which recently had issued 190 million new shares to raise a stark sum of €1.7 billion in order to refund a €4.4 billion bridge loan for the Osram takeover deal provided by the Bank of America Merrill Lynch alongside UBS and HSBC.