AYALA-LED Integrated Micro-Electronics Inc., (IMI) has raised P1.6 billion in fresh funds from its base offer, meeting the lower end of the company’s planned fundraising target range of P1.6 billion to P2.2 billion.
IMI said the base offer of 215 million shares was oversubscribed and received very strong support from retail investors, but the company chose not to exercise the 85 million oversubscription shares that would have increased the raised capital to P2.2 billion.
Asked why the company did not exercise the oversubscription despite strong demand, Reggie Cariaso, BPI Capital Corp. head of equity capital markets, said in a text message: “The company wants to make sure the stock trades well in the after market.”
BPI Capital is the issue manager, bookrunner and lead underwriter for the offer, while Investment & Capital Corporation of the Philippines (ICCP) and SB Capital Investment Corp. are the participating underwriters. BPI Capital was also IMI’s advisor in its listing by way of introduction in 2010.
About 70 percent of the offer’s proceeds will go towards the company’s planned capital expenditure of $1.2 billion for next year, largely for business expansion, while the remainder will be earmarked for debt refinancing and general corporate purposes.
The company’s expansion plans are geared towards international operations in Bulgaria, China, Czech Republic, Mexico and the Philippines, as well as ramping up its medical equipment sector.
As of end-September, the Philippines contribute 26 percent of total IMI sales, while 74 percent is coming from international operations in China, Europe, and Mexico.
IMI’s public float climbed to 20.70 percent from the previous 10.26 percent after the execution of the follow-on offer last November 24 to 28. The listing date is on December 5.
The Ayala-led firm saw a surge its nine months net income to $21 million from $5.3 million it recorded the same time last year.
Revenues also advanced 19 percent to $650.1 million from the $547.1 million a year ago. For the third quarter alone, IMI recorded an 11 percent increase to $219.1 million on double-digit growth in telecommunications infrastructure devices, storage devices, and automotive components.
Started in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices.
The company has a 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.