Celestica launches $3B equity offering to fund AI infrastructure

Celestica Inc. (NYSE: CLS) announced a $3 billion treasury offering of common shares, with proceeds intended for working capital, capital expenditures, and general corporate purposes, according to a company press release.

The Toronto-based company said it will grant underwriters a 30-day option to purchase up to an additional 15% of the shares offered. BofA Securities and Citigroup are acting as joint lead bookrunners, with TD Securities serving as bookrunner.

The closing of the offering is subject to customary conditions, including the execution of an underwriting agreement and the listing of the additional common shares on the New York Stock Exchange and the Toronto Stock Exchange.

Chief Financial Officer Mandeep Chawla said the capital raise is intended to maintain balance sheet flexibility as the company scales alongside customer demand. "Maintaining a robust capital structure with enhanced balance sheet flexibility is central to executing our long-term strategy," he said.

Chief Executive Officer Rob Mionis said demand conditions are driving the decision. "Our demand outlook is the strongest in the Company's history, and our multi-year visibility continues to strengthen," he said.

Celestica provides engineering, manufacturing, and supply chain services with a focus on data center infrastructure, including AI compute and Ethernet networking products.

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