Apple supplier IQE slides after discounted placing

Apple supplier IQE tumbled on Thursday after saying it had raised around £30m in a discounted share placing.

IQE, which supplies compound semiconductor wafer products, sold 150m shares at 20p each, which is a discount of around 15% to the closing share price on Wednesday.

In a statement released late on Wednesday, the company said proceeds from the placing would help it to meet its near-term liquidity requirements.

Chief executive Americo Lemos said: "Our industry is currently experiencing a downturn cycle but it has demonstrated consistent growth over many decades, which is forecasted to continue. As macro technology trends drive an increased need for compound semiconductors, IQE is strategically positioned to serve the global market and underpin the next wave of innovation.

"This fundraise enables our investment in new growth markets including power electronics and microLED display, in line with our strategy. As a result, we are well-placed to capitalise on our excellent pipeline and global footprint as we emerge from the current cycle."

At 1105 BST, the shares were down 14% at 20.25p.