SiTime Corporation (NASDAQ:SITM) is one of the best multibagger stocks to buy in 2026.
On May 20, SiTime priced an upsized underwritten offering of $1.2 billion in 0% Convertible Senior Notes due 2031, increased from the initially planned $1.1 billion
The sale is expected to close on May 22, 2026, with an additional 13-day overallotment option for underwriters to purchase up to $150 million more in notes. The initial conversion price is set at approximately $1,040.47 per share, representing a 50% premium over the company’s May 19, 2026, closing stock price. The company expects net proceeds to reach approximately $1.17 billion, or $1.32 billion if the overallotment option is fully exercised.
SiTime plans to use these funds to finance a portion of its previously announced acquisition of Renesas Electronics Corporation’s timing business assets, pay $108 million for concurrent capped call transactions, and allocate any remaining funds toward general corporate purposes. The capped call transactions feature an initial cap price of $1,734.15 to mitigate potential equity dilution upon note conversion. The registered offering is being managed by Wells Fargo Securities, Goldman Sachs & Co.