Sivers Semiconductors Sinks 18% After €60M Placement as Dilution and Probes Override Strong Demand

Sivers Semiconductors shares collapse 18% after oversubscribed €60M placement, wiping out a third of value in seven sessions amid dilution and regulatory probes.

With a 30-day annualized volatility rattling past 225%, investors in Sivers Semiconductors are used to gut-wrenching moves. Yet Thursday’s bloodletting still stood out: shares collapsed nearly 18%, pushing the stock to around €4.40 and wiping out a third of its value in just seven trading sessions. The trigger wasn’t bad news in the traditional sense — the company had just completed a heavily oversubscribed private placement worth roughly €60 million (700 million Swedish kronor). But the mechanics of the deal turned what should have been a vote of confidence into a painful reality check.

Pareto Securities managed the accelerated bookbuilding, which saw 12,280,701 new shares placed at 57 kronor each. That represented a discount of about 9.7% to the June 30 closing price on Nasdaq Stockholm. Both new and existing institutional investors from Sweden and abroad snapped up the stock, creating multiple oversubscription. The proceeds are earmarked for expanding indium phosphide laser and optical amplifier production, targeting the booming markets for AI data centres and automotive LiDAR systems. Yet the sheer volume of new equity — and the consequent dilution — spooked existing shareholders. The stock is now trading well below the placement price, meaning even those who bought into the offering are sitting on paper losses.

Adding to the unease, several top insiders remain locked up until July 16 under prior restrictions. Among those barred from selling shares are board members Bami Bastani, Karin Raj and Todd Thomson, as well as CEO Vickram Vathulya and CFO Heine Thorsgaard. Sivers said no additional lock?up agreements were needed because the existing ones still apply. Meanwhile, multiple regulatory probes are hanging over the company, though details remain scarce. Market observers have flagged these ongoing investigations as an extra weight on sentiment, compounding the damage from dilution and the steep discount.

The technical damage is severe. The stock has plunged 57.4% from its 52?week high of 10.23 kronor, touched on June 3. That peak came just three months after the stock bottomed at 0.27 kronor on March 3 — a stunning 15?fold rally that now looks overextended. The 50?day moving average sits at 6.11 kronor, leaving the current price roughly 28% below. The 100?day average at 3.49 kronor is getting dangerously close. The relative strength index has fallen to around 34.8, nearing oversold territory but not yet triggering a bounce. With weekly losses of 32.3% and monthly losses of 49.3%, the selling has been relentless.

For Sivers Semiconductors, the capital is now in the bank and the expansion plan is funded. The company is betting big on AI?driven photonics and automotive LiDAR. But it must now navigate a shareholder base rattled by dilution, extreme volatility, insider selling restrictions, and unanswered regulatory questions. Until the fog lifts, the stock’s wild ride looks set to continue.