WT Microelectronics Placement
WT Microelectronics is looking to raise approximately US$190m in its primary global depository shares (GDS) offering to repay foreign currency denominated debt and for procuring raw materials in foreign currencies.While we can’t explicitly state that the deal is well-flagged, the firm has seen its gearing ratio increase and CFO was negative in its latest financial year. Furthermore, the firm has recently come out to agree to acquire Singapore-listed Excelpoint Technology for US$179m, to be acquired in 3Q22, subject to approval.
While listing proceeds won’t be directly used to fund the acquisition but rather to pay down debt, the lifting of its debt overhang could aid sentiment as well. Short interest has also been creeping up.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
WT Microelectronics and its subsidiaries are engaged in the development and sale of electronics and communication equipment. Co.'s products include discrete devices, application specific integrated circuit, memory integrated circuit, logic integrated circuit, linear integrated circuit, camera module integrated circuit and others.
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
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