Greener BeeGreen ElectronicsIMI secures SEC green light for long-delayed share offering

Listed firm Integrated Micro-Electronics (IMI), one of Ayala Corp.’s international units, may now proceed with its long-delayed public offering, which involves sale of as much as P3 billion worth of IMI stocks to the public, after securing regulatory approval.

IMI is the global electronics manufacturing unit of the oldest conglomerate in the country, Ayala Corp.

During its recent en banc session, the Securities and Exchange Commission (SEC) finally approved IMI’s planned follow-on offering, which has long been delayed since the company’s listing by way of introduction in the local bourse in 2010.

In the listing rule of the Philippine Stock Exchange (PSE), the bourse allows a company to list by way of introduction in a condition that it has to conduct a public offering a year after its market entry.

In the case of IMI, the company has failed to sell shares to the public a year after its listing in the PSE in 2010 and has delayed the offering for about three years now.

The company, a few weeks ago, has finally bared plans to do a follow-on offering.

In a prospectus filed with the SEC, IMI specified that it intends to issue and offer up to 215 million common shares plus an over-allotment option for 85 million shares.

Based on the maximum offer price of P10.00 per share, IMI expects to raise gross proceeds amounting to approximately P2.15 billion. In the event that the oversubscription option is exercised in full, the company expects to raise gross proceeds of up to P3 billion.

“The Company intends to use the net proceeds from the Offer for capital expenditure, business expansion, refinancing and capital requirements of the Company,” IMI told SEC.

Of the total proceeds, bulk will go to its capital expenditure and business expansion, the rest will be used to refinance its debt and bankroll working capital.

The shares will be listed at the main board of the PSE.

During the first half of this year, IMI posted US$11.3 million in net income, more than five times the US$2.1 million it earned in the same period last year, while its consolidated first-half revenues grew by 23 percent to US$431.0 million from US$350.5 million for the same period in 2013.

Article source: http://ph.news.yahoo.com/imi-secures-sec-green-light-long-delayed-share-170853928.html


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