IMI’s P5-B stock rights offer gets PSE approval
AYALA-LED Integrated Micro-Electronics, Inc. (IMI) has bagged the Philippine Stock Exchange (PSE)’s nod to proceed with its P5-billion stock rights offer (SRO).
In a disclosure to the stock exchange on Wednesday, the listed electronics manufacturer said the bourse has approved the issuance last Jan. 24.
IMI looks to offer up to 350 million common shares to eligible shareholders from Feb. 19 to 23.
One rights share will be made available for holders of at least 5.3351 common shares in the firm, as of Feb. 14. The offer price is set to be disclosed on Feb. 7.
IMI’s parent, AC Industrial Technology Holdings, Inc., together with Resins, Inc., owning an aggregate of 63.46% of the company, will exercise their right to the participate in the offer should there be unsubscribed rights shares left after the mandatory second round of the SRO.
Proceeds of the SRO will be used to finance the company’s capital expenditures and to refinance its debts.
The company has engaged BPI Capital Corp. to serve as the issue’s manager, book runner, and underwriter.
Incorporated in 1980, IMI is the electronics manufacturing arm of Ayala Corp. Its main products and services include design and engineering solutions, supply chain solutions, manufacturing solutions, business model capabilities and solutions, power semiconductor assembly and testing, and global materials and supply chain management.
The conglomerate has been ramping up its manufacturing portfolio since AC Industrials was formed in 2016. Ayala President and Chief Operating Officer Fernando Zobel de Ayala previously said that its venture into the automotive and manufacturing sector would help sustain profitability, as well as allow the company to maximize synergies with existing businesses.
For its part, IMI has been expanding its business through acquisitions since 2016, where it struck a deal to acquire a 76% stake in German firm VIA Optronics Gmbh for €47.4 million. VIA specializes in optical bonding that aims to enhance the visibility and performance of display systems.
IMI in 2017 purchased an 80% stake in United Kingdom-based electronics manufacturer STI Enterprises Ltd. through its subsidiary, IMI UK Ltd. STI provides electronics design and manufacturing solutions in both printed circuit board assembly and full box-build manufacturing for high-reliability industries. It has manufacturing facilities in Hook and Poynton in the UK, as well as in Cebu.
IMI realized a 15% increase to $24.09 million in its net income attributable to the parent for the first nine months of 2017, following a 29% growth in revenues during the same period to $795.2 million.
Shares in IMI were flat at P19.20 apiece at the PSE on Wednesday. —