Celestica has announced it will raise $3bn by issuing new shares to investors. The company will use the funds to accelerate its global data centre and AI infrastructure investments.
The company plans to issue common shares in a treasury offering.
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The banks underwriting the share sale will have the option to buy up to 15% more shares within 30 days if demand from investors is strong.
BofA Securities and Citigroup have been named as joint lead underwriters for the transaction, while TD Securities is also acting as an underwriter.
Celestica stated that proceeds from the share sale will be allocated towards working capital, capital expenditures, and other general corporate purposes.
The company links this capital raise to heightened visibility into robust, multi-year demand for AI infrastructure among its customer base.
Celestica is positioning itself to support growth opportunities in high-performance AI computing and data centre Ethernet networking.
Celestica chief financial officer Mandeep Chawla said: “We are experiencing accelerating momentum across our business, giving us strong conviction to continue investing behind our capabilities.
“Maintaining a robust capital structure with enhanced balance sheet flexibility is central to executing our long-term strategy, ensuring we can seamlessly scale alongside our customers’ evolving multi-year capital deployment plans.”
Celestica CEO Rob Mionis said: “Strong operational execution across both segments, combined with unprecedented demand from our Connectivity & Cloud Solutions (CCS) customers, underscores the significant scale of the AI infrastructure buildout.
“Our demand outlook is the strongest in the Company’s history, and our multi-year visibility continues to strengthen. Celestica’s market leadership and disciplined execution, fully supported by this transaction, position us to capitalise on this secular growth and deliver long-term shareholder value.”
