IMI says it’s time to get bigger FIVE YEARS after going public and raising funds recently from a public offer, micro chip manufacturer Integrated Micro-Electronics, Inc. (IMI) said it is time to grow bigger. On Friday, the company said it is now expanding its products and services particularly on its core markets: automotive, industrial and telecommunication infrastructure. “Before, partners would come and use our cheap labor; the value added is very small. We’re far beyond that now,” IMI President and Chief Executive Officer Arthur R. Tan said after the listing ceremony for the company’s follow-on offering at the Philippine Stock Exchange. “Now, people don’t come to us just for cheap products, but because we can offer a complete product solution for them,” he added. IMI provides electronics manufacturing services and assembles and tests semiconductors for clients in Asia, Europe and North America. Its revenue base ranges from industrial, storage and consumer electronics to medical industries -- the last segment being strategically important to IMI given favorable prospects, the company said. “We are overweight in automotive, industrial and telecommunications,” Mr. Tan said. “They are different markets to serve because of the quality requirement, and the barrier to entry is difficult [to break] so if you are already in there, you will continue to see opportunities come your way because there are limited people who can serve those markets.” Mr. Tan said the company will use the P1.61 billion it raised from the follow-on offer to “develop new markets and services and acquire new businesses.” “Our goal is to continue to be diversified in terms of geography and markets,” he added. The long overdue offer, made nearly five years after going public without selling shares, ran from Nov. 24 to 28. The Ayala-led firm sold 215 million primary common shares at P7.50 apiece. “This follow-on offering is much awaited. When we listed by way of introduction, the market conditions were not favorable and we didn’t need additional capital that time -- we had additional cash flow,” IMI Chief Financial Officer Jerome S. Tan said. Shares in the company lost 41 centavos or 5.21% to close at P7.46 on Friday. bworldonline/content.php?section=Corporate&title=imi-says-it&rsquos-time-to-get-bigger&id=99159 12/05/2014
Posted on: Sun, 07 Dec 2014 06:57:50 +0000
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