INTEGRATED Micro-Electronics Inc. (IMI) is looking at the medical electronics market to expand its product portfolio, as it scales up operations in leading segments such as automotive and telecommunications.
“We are already embedded in the markets that we want. Now, we can start focusing and expanding into markets that are strategically important to us such as the medical (electronics) market,” IMI President Arthur Tan said.
IMI is in the middle of a follow on offering, trying to sell 215 million shares at P7.50 apiece until Friday, plus an over-allotment option for 85 million shares, to raise up to P2.2 billion for the company’s capital expenditures, business expansion, and working capital requirements.
After the follow on offering, Tan said the company will focus on expanding its markets, as well as looking at mergers and acquisitions to boost growth.
“The (medical market) expansion is to further drive our organic growth. At the same time, we’re going to use the extra capital to look at the possibility for mergers and acquisitions,” Tan said.
IMI’s capital expenditures (capex) average “around $20 million to $30 million a year,” according to Tan.
“We already know that a lot of businesses are coming into the country, and we need to buy equipment and put up facilities. The business expansion is targeting new businesses, new markets like the medical segment. So we have to put money for expansion [on top of the yearly capex],” Tan said.
IMI has a diversified revenue base covering the automotive sector that accounts for 37 percent of revenues, telecommunications (20 percent), industrial devices (14 percent), and consumer devices (14 percent).