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Thursday, September 25, 2014

Ayala semiconductor arm's stock surges after pricing follow-on share sale at a premium

Shares in Integrated Micro-Electronics Inc (IMI) surged on Thursday after the Ayala-led semiconductor firm priced its P3-billion follow-on offering at a premium.

In a disclosure to the Philippine Stock Exchange (PSE), IMI said its board of directors cleared the issuance of up to 215 million shares plus an over-allotment option of 85 million shares at an offer price of up to P10 per share.

The offer price represents a 47 percent premium from yesterday's closing price of P6.8 per share. IMI's stock price rose 26.47 percent to P8.60 apiece as of 1:54 p.m.

Proceeds of the offering will be used for capital expenditure, business expansion, refinancing and working capital requirements.

BPI Capital Corp will be the issue manager and lead underwriter for the offering.

IMI is undertaking the much delayed follow-on offering to meet the post-listing requirements of the PSE.

In 2010, IMI joined the local bourse through listing by way of introduction, which allowed the firm's existing stockholders to trade their holdings on the exchange without raising new capital.

Companies that join the bourse through this listing method are required to stage a public offering 12 months after, according to PSE rules.

IMI has been putting off the share sale, saying that its market price is undervalued. The exchange has been penalizing the company for failure to meet its rules.

IMI's net attributable profit grew more than 5 times to $11.3 million in the first half of this year, from $2.1 million a year ago, on strong demand from telecommunications, automotive and storage device markets.

- Interaksyon

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