IQE shares slunoed, falling 18.3% to 40.35p, after this morning's placing and retail offer raised £13m at an issue price of 19.8p per share.
The placing and retail offer, together with a MACOM investment and the reinvestment of existing convertible loan notes, will in aggregate raise total gross cash proceeds of £81 million.
IQE is a leading global supplier of compound semiconductor wafers and advanced material solutions.
The 65.66 million shares issued through the placing and retail components represent approximately 5.0% of the enlarged share capital of 1.31 billion shares expected following admission.
Lombard Odier and certain Artisan Partners accounts participated in the placing and will hold approximately 16.8% and 15.8% respectively of the fully diluted issued capital as enlarged by the Fundraising, with Lombard Odier represented on the board by Harmesh Suniara. No part of the fundraising is underwritten and Peel Hunt acted as sole bookrunner for the placing.
Completion of the fundraising remains conditional on shareholders approving resolutions at a general meeting on 15 May and on UK and Italian foreign investment clearances for the MACOM subscription. The circular is expected to be published on or approximately 29 April and completion is anticipated in early June, with a latest admission date of 11 August.
"The directors independent of the fundraising, having consulted with the company's nominated adviser, Peel Hunt, consider the terms of the fundraising to be fair and reasonable insofar as the company's shareholders are concerned," IQE said.
