Ayala-led IMI board approves follow-on share offer

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AYALA-led semiconductor firm Integrated Micro-Electronics Inc. (IMI) expects to push ahead with its follow-on offering anytime soon after its board of directors gave the go signal for the finalization of the terms and conditions of the long-delayed share sale.

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In a filing with the Philippine Stock Exchange (PSE), IMI said its board of directors has approved the follow-on offer of its common shares although the company still has to finalize the terms and conditions of the offer.

After listing by way of introduction in 2010, the local bourse gave IMI a 12-month period within which to conduct a public offering. But after listing four years ago, IMI kept postponing the offer, saying that its market price was undervalued and that a share sale within the 12-month period would be unfair to existing shareholders.

Listing by way of introduction (LBI) is a less costly option than an initial public offering (IPO) for companies that want to list on the stock market. With LBI, a company’s shares will be listed and traded automatically on the exchange upon the PSE’s approval of the listing application without having to raise new capital.

However, under PSE rules, a stock that listed via LBI is required to hold a follow-on offering within 12 months.

In the same filing, IMI said it has also finalized the redemption of 1.3 billion unlisted preferred shares.

For the first half of the year, IMI’s net income increased almost five times to $11.3 million from $2.1 million a year ago, while revenue rose 23 percent to $431 million from $350.5 million previously.

Started in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices. The company has manufacturing presence in Asia, Europe, and North America.

IMI fully owns IMI International (Singapore) Pte. Ltd., IMI USA Inc. and IMI Japan Inc, while it holds an 83.25 percent stake in PSi Technologies Inc. KRISTYN NIKA M. LAZO

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