Leading Welsh tech firm IQE has confirmed an £81m investment package to support its growth plans, following a strategic review of the business that explored its sale. The company, which is listed on AIM, is a leading global supplier of compound semiconductor wafer products and advanced material solutions.
Funding Details
The funding includes a £30m investment by US semiconductor manufacturer MACOM Technology Solutions, which is also providing a further £15m in convertible loan notes. MACOM, which will nominate two new members to IQE's board, recently entered into long-term supply agreements for the Cardiff-headquartered firm's epitaxial services across multiple technologies.
The funding also includes a reinvestment of £23m from existing convertible loan note holders. IQE has closed a £13m placing and retail offer at 19.8p per share. IQE's share price reacted negatively, falling to under 40p, having last week been trading at more than 70p.
Strategic Review Concluded
The fundraising, subject to IQE shareholder approval at a general meeting scheduled for May 15th, strengthens IQE's balance sheet and capital position while supporting investment in its core technologies and long-term growth. It also marks the conclusion of the company's strategic review, which began in November 2024. A potential sale of the business did not materialise.
Technology and Applications
IQE's technology enables a diverse range of applications including smart connected devices, communications infrastructure, AI and data centres, automotive and industrial, and aerospace and defence.
Executive Comments
IQE's chief executive Jutta Meler said: "This proposed transaction is transformational for IQE. The investment from MACOM and other existing shareholders will provide the balance sheet strength to allow us to capitalise on the opportunities in front of us, while maintaining our unique global footprint. We are now better positioned than ever to execute on our growth strategy, including in key technologies such as Indium Phosphide and Gallium Nitride. We look forward to delivering value for shareholders with continued fiscal rigour and by serving our global customer base through operational excellence."
Mark Cubitt, chair of IQE, said: "This is an incredibly exciting time for IQE. I am pleased we have concluded the Strategic Review after a thorough process, achieving a fantastic outcome for all stakeholders. Today's announcement is a recognition of the intrinsic value of the Company and its importance in key growth segments. This fundraise removes debt pressures and leaves the Group with a capital structure to enable future growth."
Stephen Daly, chief executive of MACOM, said: "As a longstanding customer, MACOM believes this transaction will allow IQE to realise its full potential in technology, operational execution and financial performance."
