Sivers Semiconductors AB experienced a significant surge in its stock price on Wednesday, climbing 31.3% to 56.65 Swedish crowns. The rally came after MSCI announced the inclusion of the Swedish chipmaker in its Sweden small-cap index, a move that has drawn increased attention to the company's ongoing efforts to list on Nasdaq New York.
The MSCI review, which will take effect after market close on May 29, places Sivers among a select group of companies in the Global Small Cap Indexes. This development has amplified investor interest in Sivers, which is simultaneously working on a dual listing in the United States while maintaining its Swedish incorporation.
On May 11, shareholders approved a private placement of 8.62 million ordinary shares at 14.50 crowns each, bypassing traditional preemptive rights. The company expects the placement to raise approximately 125 million crowns before costs, with dilution estimated at around 2.5% on a fully diluted basis. The proceeds are earmarked for photonics and wireless technologies, including indium phosphide lasers and optical amplifiers for AI data centers and LIDAR, as well as millimeter-wave beamformers for satellite, 5G, and defense applications.
CEO Vickram Vathulya described the investor group as 'a strong focused group,' noting that the new capital provides additional fuel as the company targets its 'next inflection point.' The placement attracted both Swedish and international investors, including DNB Disruptive Opportunities, DNB Nordic Small Cap, Storebrand Sverigefond, Alcur Fonder, Atlant Fonder, Cicero Fonder, Hudson Bay Capital Management, and Waterside AM.
The company is also preparing its 2024 and 2025 consolidated accounts to meet PCAOB standards, the audit requirements for U.S. public companies. This process has already caused delays: the 2025 annual report has been postponed to May 15, the annual general meeting rescheduled for June 15, and first-quarter results are now expected on May 20. While the more extensive audit may lead to changes in revenue recognition, inventory valuations, and share-option expenses, Sivers has stated it does not anticipate material effects on its financials.
Operationally, Sivers continues to build momentum. Last week, the company announced a $1.5 million development deal with Tachyon Networks to create a 60 GHz millimeter-wave transceiver for fixed wireless access, offering a 'lower risk path' according to Harish Krishnaswamy, head of Sivers' wireless division. Tachyon CEO Hal Bledsoe emphasized a 'clear and scalable path forward' for both firms.
The broader semiconductor sector has seen strong performance, with the Philadelphia SE Semiconductor Index surging 64% since March 30, far outpacing the S&P 500's 17% gain. However, caution remains as some analysts question whether the rally is becoming too exuberant. Short interest data from Sweden shows Voleon Capital Management holding short positions equal to 1.86% of Sivers' shares as of May 11, with Two Sigma Investments at 1.78% as of May 8.
Questions about market conduct have also emerged. A prosecutor with Sweden's Economic Crime Authority has suggested that Nasdaq should investigate whether information about Sivers' U.S. listing plans was leaked ahead of the company's official confirmation. With the annual report due May 15 and Q1 results on May 20, the coming weeks will be critical for the company as it seeks to solidify its position in the competitive semiconductor landscape.
