MANILA, Philippines–Integrated Micro-Electronics Inc., the semiconductor and electronics manufacturing arm of the Ayala Group, is selling as much as P3 billion in shares this year at a premium to its market value to fund its expansion and a possible refinancing of debt.
The company was also seeking to widen its public ownership profile, which is just slightly above the minimum 10 percent threshold, while taking advantage of a buoyant stock market, a company official said.
In a stock exchange filing on Thursday, IMI said its board had approved the sale of 215 million common shares plus an over-allotment option of 85 million at up to P10 per share. The amount represents a 47 percent premium over its closing price a day before the announcement.
IMI shares, which gained as much as 38 percent, closed up by 14.7 percent to P7.80 per share on Thursday.
IMI said the offer, which would fund capital expenditure, business expansion, refinancing and working capital, would be arranged by Ayala-led BPI Capital.
“We’re targeting to [complete] the transaction this year,” Jerome Tan, IMI chief financial officer, said in an interview Thursday, noting that management was also keen on expanding IMI’s trading liquidity.
Data from the PSE showed that IMI’s public float stood at 10.1 percent and the deal could expand this to about 25 percent, assuming an all primary share offer and if the over allotment would be fully sold, Inquirer calculations showed.
Tan said other details relating to the share sale would be disclosed at a later date.
“We think it’s a good time to sell because the global environment has improved and there was a dramatic improvement in our net income,” Tan added. The PSEi closed down 0.83 percent to 7,294.21 yesterday, still near an all-time high of 7,400 posted in May last year.
IMI earlier announced that its net income in the first half $11.3 million, more than five times its profit during the same period last year. It said total revenues during the period hit $431 million, up 23 percent with Tan noting that demand was driven by customers in the telecommunications infrastructure, automotive electronics, and storage device markets.
IMI China’s first-half revenue of $161.0 million represent a 32 percent increase from year-ago level, boosted by volume expansion in the telecommunications segment. The China electronics manufacturing services operations contributed 37 percent to IMI’s total first-half 2014 revenue.