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IQE has raised USD 17.5 million (GBP 13 million) through a heavily discounted share sale as part of a broader GBP 81 million fundraising plan supported by MACOM Technology Solutions. The issue, priced at a 60 per cent discount, led to a sharp fall in the company’s share price. The wider funding structure includes equity investment, convertible loan notes, and reinvestment by existing noteholders. The transaction remains subject to shareholder approval and regulatory clearances, while also marking the conclusion of the company’s strategic review and strengthening its long-term supply partnership with MACOM.
IQE has raised approximately USD 17.5 million through a discounted equity placing as part of a larger GBP 81 million fundraising programme backed by MACOM Technology Solutions, aimed at strengthening liquidity and supporting long-term operations. Advertisement
The capital raise, announced recently, involved the issuance of 55.6 million placing shares and 10.1 million retail offer shares at a price of 19.8 pence per share. The pricing represented a discount of around 60 per cent to the company’s previous closing price, leading to a decline of over 23 per cent in its share value during the trading session.
The equity issuance forms part of a broader funding structure that includes a GBP 30 million equity investment and GBP 15 million in convertible loan notes from MACOM, which is an existing customer of IQE. In addition, existing convertible noteholders are expected to reinvest approximately GBP 23 million, contributing to the overall fundraising plan.
As part of the agreement, IQE has entered into long-term strategic supply arrangements with MACOM. Upon completion of the investment, MACOM will be entitled to nominate two non-executive directors to IQE’s board, strengthening its strategic involvement in the company’s operations.
Following the announcement, IQE indicated that it has concluded its strategic review process and is no longer considered to be in an offer period under the United Kingdom’s takeover regulations.
The completion of the fundraising remains contingent upon shareholder approval at a general meeting expected to be held in the coming weeks, along with the receipt of necessary regulatory clearances for MACOM’s investment. In the event that approvals are not secured, the company may be required to explore alternative funding options to address its near-term liquidity requirements.
Post-investment, MACOM is expected to hold approximately 11.5 per cent of IQE’s total voting rights, reflecting a minority but strategic stake in the business.
IQE supplies semiconductor wafer products used in advanced applications, including components for facial recognition systems in consumer electronics. The funding exercise is intended to support operational continuity and reinforce its position within the semiconductor supply chain amid evolving market conditions.
Source - Reuters
5th Jun, 2025
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