Ayala-OWNED semiconductor firm Integrated Micro-Electronics Inc. (IMI) is set to issue a total of P3 billion worth of shares under its follow-on offering to fully complete the unit’s listing process.
In a statement released Thursday, IMI said its board of directors has approved the issue of P2.15 billion worth of common shares with an oversubscription option of P850 million.
“Our board of directors approved today the issuance and public offering of up to 215 million of our common shares plus an over-allotment option for 85 million shares at an offer price of up to P10 per share,” IMI said.
The net proceeds of the P3 billion share sale will be used for the company’s capital expenditures, business expansion, refinancing and working capital requirements.
BPI Capital Corp. was appointed as the issue manager and lead underwriter for the share sale. The shares will be filed with the Securities and Exchange Commission and will be listed on the Philippine Stock Exchange (PSE).
After debuting in the stock exchange four years ago by way of introduction, the IMI was given a 12-month period to complete its follow-on offering. Since then, the Ayala-owned firm has delayed the follow-on offering of shares, saying the company is being undervalued and the share sale within the 12 months period will be unfair to existing shareholders.
Through listing by way of introduction, a company’s shares will be listed and traded automatically at the stock exchange upon PSE’s approval of the listing application. Listing by way of introduction is less costly compared to an initial public offering or IPO.
Only by conducting a follow-on offering of shares, within 12 months after listing by way of introduction, will the company be able to raise funds.
For the first half of the year, IMI’s net income increased to $11.3 million from $2.1 million in the same period last year, while revenues went up 23 percent to $431 million from $350.5 million a year ago.
Established 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 83.25 percent stake in PSi Technologies Inc.