Sivers Semiconductors’ 700M SEK Placement Sparks 18% Selloff as Insider Lock-Up Waiver and Regulatory Probes Weigh

Institutional investors queued up to buy nearly 12.3 million new shares in Sivers Semiconductors at a 9.7% discount, yet the stock tumbled 18.39% the day after the placement closed — a disconnect that underscores just how fragile confidence has become in the Swedish photonics and chipmaker.

Shares closed at 4.36 euro on the day of the rout, leaving the stock 57.36% below its 2025 peak of 10.23 euro reached on June 3. Over the past month, the equity has shed nearly 47% of its value, and it now trades roughly 29% under its 50-day moving average of 6.11 euro. The 120-million-crown discount failed to entice enough buying to offset the wave of selling.

Oversubscribed placement hides dilution angst

Sivers issued 12,280,701 new common shares at 57 Swedish kronor apiece, raising approximately 700 million kronor. The board acted under an authorization granted at the annual general meeting on June 15, 2026. Both Swedish and international institutional investors — new and existing — oversubscribed the offering multiple times.

Yet the same week the capital landed, the stock collapsed. Traders point to dilution fears and confusion over a lock-up exemption granted by Pareto Securities as the primary triggers. In April, Sivers had agreed not to issue additional equity for 180 days as part of an earlier placement. Pareto waived that restriction to allow the new deal, requiring Sivers to commit to a fresh 120-day lock-up period following the current offering.

CEO bets big on indium phosphide capacity

Chief executive Vickram Vathulya framed the cash injection as a strategic necessity. The proceeds will fund anticipatory investments in manufacturing capacity for indium phosphide lasers and optical amplifiers — components critical to AI data centers, satellite communications, and automotive LiDAR. Long lead times for fabrication equipment, he explained, make early capacity builds essential.

The company also plans to strengthen its sales presence and compress development cycles, aiming to convert a growing pipeline into revenue. Vathulya left the door open for bolt-on acquisitions as well.

Should investors sell immediately? Or is it worth buying Sivers Semiconductors?

Top insiders, including board members Bami Bastani, Karin Raj, and Todd Thomson, alongside Vathulya and chief financial officer Heine Thorsgaard, remain bound by lock-up obligations from the April placement that run until July 16. Sivers said no additional lock-up agreements were needed for the new round.

Regulatory probes add to the pressure

Adding to the uncertainty, market observers point to multiple ongoing regulatory investigations targeting the company. While Sivers has disclosed few details, the probes have become a recurring source of concern for investors already rattled by extreme price swings.

The stock’s 14-day relative strength index has dropped to 34.7, flirting with oversold territory. Annualized 30-day volatility stands at a staggering 225.39%, reflecting the ferocity of recent moves.

Analyst optimism clashes with market reality

Analyst house Redeye raised its price target on Sivers after the transaction, citing a stronger balance sheet. But the crucial test remains whether the fresh capital will actually translate the company’s ballooning order pipeline into sales — or whether further dilutive rounds lie ahead.

Sivers now has 319,953,572 common shares outstanding as of June 30. With the next quarterly report due, investors will get a first look at whether the CEO’s investment strategy is beginning to deliver commercial results. Until then, the stock is likely to remain volatile, caught between institutional demand for AI-photonics exposure and a skeptical shareholder base wrestling with dilution, legal uncertainty, and a chart full of warning signals.