IQE planning to float minority stake in Taiwan subsidiary

Compound semiconductor wafer and advanced material specialist IQE announced its intention to pursue an initial public offering (IPO) for its Taiwanese operating subsidiary IQE Taiwan on the Taiwan Stock Exchange (TWSE) on Wednesday.

The AIM-traded firm said the planned IPO would be a significant strategic move, as it looked to enhance its presence in Asia and leverage the growth potential of its Taiwanese operations.

IQE said it planned to list IQE Taiwan on the TWSE by selling a minority shareholding through the public offering while retaining control of the subsidiary.

Proceeds from the IPO were expected to be used across the group to support its broader growth strategy, further strengthening its position in the compound semiconductor industry.

The IPO process was in its early stages, with IQE having appointed Taishin Securities as its financial advisor to guide the preparation and execution of the listing.

It said the IPO would be conducted in two phases, with the initial listing on the Emerging Market Board expected in the first half of 2025, subject to the usual regulatory approvals and procedures.

Further details regarding the transaction and its progress would be disclosed as the process developed.

“This is an exciting opportunity for IQE and will accelerate the investment in our strategy for growth as we capitalise on the market opportunities ahead, including in GaN Power,” said chief executive officer Americo Lemos.

“A successful IPO of IQE Taiwan will allow us to maximise the value of our asset whilst continuing to offer a secure and resilient supply chain for our global customers.”

At 1224 BST, shares in IQE were up 6.44% at 31.19p.

Reporting by Josh White for Sharecast.com.