15 March 2012

M/A-COM Tech prices IPO at $19 per share to raise over $105m

M/A-COM Technology Solutions Holdings Inc of Lowell, MA, USA (which makes analog semiconductors, components and subassemblies for RF, microwave and millimeter-wave applications) has announced the pricing of its initial public offering of 6,000,000 shares of common stock at $19.00 per share (at the top end of the $17-19 range announced on 28 February).

A registration statement relating to these securities has been filed with, and on 14 March was declared effective by, the US Securities and Exchange Commission (SEC).

A total of 5,556,000 shares are being offered by M/A-COM Tech (to raise $105.6m) and 444,000 shares are being offered by a selling stockholder. In addition, certain selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 900,000 shares to cover over-allotments, if any. M/A-COM Tech will not receive any proceeds from the sale of shares by the selling stockholders.

However, the amount raised is significantly below the $230m that would have been raised according to the firm’s initial IPO filing with the SEC last August. Since then, revenue in fourth-quarter 2011 of $73m was down 3% year-on-year and 7% sequentially, due to weaker demand in the networks segment and the impact of October’s flooding in Thailand on contract manufacturing supplier Fabrinet.

The new shares begin trading today (15 March) on The Nasdaq Global Select Market under the ticker symbol ‘MTSI’. Barclays Capital Inc, J.P. Morgan Securities LLC and Jefferies & Company Inc are acting as joint book-running managers (lead underwriters). Needham & Company LLC, Raymond James & Associates Inc and Stifel Nicolaus & Company Inc are acting as co-managers for the offering.

Tags: M/A-COM

Visit: www.macomtech.com

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