IQE today reported a jump in revenues as the semiconductor business edged a step closer to preparing for the IPO of its Taiwan subsidiary.
The Cardiff-based business said it had seen “a very positive reaction from its first round of engagement with investors” after it unveiled plans in July for the flotation of its Taiwan operations on the Taiwan Stock Exchange.
IQE said it intends to proceed with the IPO and expects to list on the Emerging Market Board of the TSE in the first six months of next year.
CEO Americo Lemos told UKTN: “I was in Taiwan a few weeks ago and I had the chance to sit down with strategic investors, the level of appetite was very strong and I was impressed by the feedback we have received.
“The Taiwan Stock Exchange is where we have the best competitive benchmark to what we do, the investor base there are very familiar to what we do and the valuations in the TSE are among the best in the world for our industry.
“Our proposed IPO will enable us to accelerate our diversification strategy as it will provide us with significant cash resources for the company.”
It comes as IQE, which develops compound semiconductor wafer products, posted a 26.7% jump in sales to £66 million for the first six months of the year, as it pared back operating losses by around two-fifths to £12.1 million.
A 73% rise in the company’s wireless technology sales, including new contract wins in the Android market, helped offset a 4% dip in sales in its photonics unit, as IQE vowed to reduce its labour costs by 10% over the year.
The firm, for whom the US is its biggest market, said it had seen continued signs of recovery in the global semiconductor industry, but that the pace of progress varied between regions and market segments.
“We believe the wireless space has been the strongest in terms of recovery, while photonics still remains a bit flatter in terms of end market development,” Lemos said.
“[But] even if the total market remains flat we remain well positioned to take share from the competition.”
IQE shares fell 14% to 20.3p.
