British chipmaker IQE is planning to list its Taiwan operating subsidiary on the Taiwan Stock Exchange, with proceeds used to invest for growth.
The Cardiff-based firm, which makes epi-wafers for use in laser hair removal and facial recognition sensors in iPhones, told investors it would sell a minority stake in IQE Taiwan. and would maintain control of the business after IPO.
IQE did not say how much money they were hoping to raise from the IPO, but said the proceeds would be ‘utilised across the group to fund [its] growth strategy’.
IQE will use IPO proceeds to fund growth strategy
Americo Lemos, chief executive, said: ‘A successful IPO of IQE Taiwan will allow us to maximise the value of our asset whilst continuing to offer a secure and resilient supply chain for our global customers.’
IQE shares were up 9.7 per cent to 32.15p in early trading on Tuesday, bringing one-year gains to 61.8 per cent.
The Apple-supplier shrunk losses from £75million in 2022 to £26million last year, with global supply chain issues and weaker demand having hit its bottom-line.
Bosses maintain it is well-positioned for sustainable growth despite economic challenges as global chip demand continues to soar amid the AI boom.
The group expects to post revenues of ‘at least’ £65million when it reports interim results in September, representing year-on-year growth of around 25 per cent.
Lemos said: ‘This is an exciting opportunity for IQE and will accelerate the investment in our strategy for growth as we capitalise on the market opportunities ahead.’
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