IMI unit’s shares tumble in New York bourse debut


A UNIT of Ayala-led Integrated Micro-Electronics, Inc. (IMI) started trading at the New York Stock Exchange, where its shares fell at the opening.

Display solutions supplier VIA Optronics AG offered 6.25 million American depositary shares (ADS) at $15 apiece on Friday, its parent told the local bourse. It is targeting to raise up to $93.75 million (or around P4.54 billion) in gross proceeds.

On its first trading day, it opened at $12 per share. Its price even fell as much as 35%, according to a Reuters report. This was probably because investors find it “overvalued” at more than $300 million.

The Germany-based firm, which is 76% owned by IMI, filed for a registration statement related to its initial public offering (IPO) with the United States Securities and Exchange Commission in early September.

Its public offer of ADS, which are sold by non-US companies to American investors, will close on Sept. 29, “subject to customary closing conditions.”

VIA tapped Berenberg as its sole bookrunning manager and Craig-Hallum Capital Group as lead manager for the offering.

Certain selling shareholders have granted the underwriters a 30-day option to buy as much as 937,500 ADS at the IPO price. Proceeds from these will not go to the company.

In the second quarter, VIA saw growth in laptop demand, according to Ayala Corp., contributing to a $109 million combined revenue with STI, Ltd., a British electronics manufacturer that IMI also owns.

IMI incurred a $21.53 million net loss in the first half of 2020, reversing its net profit of $5.78 million in the previous year, due to operational and trade disruptions brought by the coronavirus pandemic.

Shares in IMI fell by 3.57% to close at P5.94 each on Monday. — Adam J. Ang

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