Sivers Semiconductors' 10% Rally Masks Deep Concerns as Short Sellers and Major Holder Restructuring Stir Uncertainty

Swedish chipmaker Sivers jumps after shareholders approve SEK 125M share issue, but a major shareholder restructuring, rising short positions, and a criminal probe cloud the outlook.

Sivers Semiconductors saw its shares leap more than 10% on Monday to SEK 48.36, after shareholders greenlit a directed share issue that pumps roughly SEK 125 million into the Swedish chipmaker's coffers. The bounce came after a brutal session on May 8, when the stock had shed 12.51%. Yet beneath the surface, a tangle of headwinds — from a major shareholder's restructuring to a swelling short position and a pending criminal probe — suggests the relief may be short-lived.

The capital increase, approved at an extraordinary general meeting, allows the company to issue up to 8.62 million new shares at SEK 14.50 apiece. Subscribers include DNB Disruptive Opportunities, DNB Nordic Small Cap and Storebrand Sverigefond. The dilution is kept to roughly 2.5% on a fully diluted basis. Sivers has agreed to a 180-day lock-up on further share issuance, while directors and top executives, including CEO Vickram Vathulya and CFO Heine Thorsgaard, are bound to a 90-day no-sale undertaking.

For the moment, the fresh capital eases balance-sheet strains. But the underlying valuation remains a lightning rod. Sivers trades at 31.1 times sales despite posting a net loss of SEK 186.5 million for 2025. Revenue climbed 25% to SEK 304 million, but adjusted EBITDA came in at minus SEK 10.8 million — a reminder that profitability remains elusive.

Pressure from the short side is intensifying. Reported net short positions now total 6.43% of outstanding shares, with Voleon Capital Management recently breaching the 0.53% European reporting threshold. The short thesis focuses squarely on the stretched multiple, which presupposes aggressive growth and a clear path to breakeven.

Adding to the jitters is the financial strain at Achilles Capital and its parent DDM Finance. The duo is restructuring after EUR 225 million in bonds came due, planning portfolio sales of around EUR 30 million and technology and life-science divestitures worth EUR 30-50 million. Sivers' stake could be caught in the crosshairs — a potential overhang that would inject more stock into an already nervous market. Management has declined to comment on a possible sale.

The company is also racing to prepare for a potential secondary listing on the Nasdaq in New York. That effort has forced a scramble to adjust its 2024 and 2025 financial statements to PCAOB auditing standards, delaying the annual report to May 15, pushing the AGM to June 15, and keeping the first-quarter 2026 numbers on track for May 20. Management views likely adjustments to revenue recognition, inventory valuation and share-based compensation as immaterial, but credibility is paramount when courting US regulators.

Complicating the timeline is a probe by the Swedish Economic Crime Authority into whether details of the planned US listing leaked before the official announcement in April. A verified breach could derail the New York timetable and strain communication with watchdogs.

Amid the corporate manoeuvring, Sivers continues to advance its photonics and wireless businesses. In early May it announced a development partnership with Tachyon Networks valued at $1.5 million, aiming to bring new transceivers to the wireless broadband access market. The deal offers a tangible proof point for the company's technology, even as investors await the audited numbers that will underpin the Nasdaq push.

Between a restive shareholder base, short-seller skepticism and the rigours of dual-listing compliance, the coming weeks will test whether Sivers can turn a good story into a sustainable recovery.