Celestica is raising $3 billion through an equity offering, the company said, as it looks to cash in on the booming demand for AI infrastructure. The Toronto-based electronics manufacturing services firm plans to use the proceeds to expand its capacity and capture more business from the artificial intelligence buildout.
A $3 Billion Capital Raise
The offering includes common shares and will be underwritten by a syndicate of banks. Celestica didn't specify the exact number of shares or the price range, but a $3 billion raise is one of the largest in the company's history. The move comes as tech giants and cloud providers race to build out data centers packed with AI chips, servers, and networking gear.
Why AI Infrastructure Now
Demand for AI computing power has surged since the release of ChatGPT and other generative AI tools. Companies like Microsoft, Google, and Amazon are spending tens of billions on new data centers. Celestica, which makes circuit boards, servers, and other hardware for these systems, is positioned to benefit. The company's revenue from AI-related products has been climbing, and the new capital will help it keep up with orders.
Celestica's Role in the AI Supply Chain
Celestica isn't a household name, but it's a key player in the electronics manufacturing services industry. It builds complex hardware for clients in the communications, aerospace, and industrial sectors. With the AI boom, its services are in high demand. The company's stock has more than doubled over the past year, reflecting investor enthusiasm. The equity offering will dilute existing shareholders but could fund growth that boosts the stock long term.
The offering is expected to close in the coming weeks, subject to market conditions. Celestica will use the funds for general corporate purposes, including capital expenditures and working capital. The company didn't provide a specific timeline for when the new capacity would come online.
