Wednesday, August 9, 2006
Qimonda AG, the DRAM spin-off of Germany's Infineon Technologies AG, raised $546 million in its disappointing initial public offering (IPO) on Tuesday (August 8), cutting the size of the planned sale by half and casting clouds over the company's future.
Qimonda (Munich) announced its long-awaited IPO at $13.00 per share, considerably lower than previously expected. The DRAM maker issued 42 million American Depository Shares (ADSs) in the market, representing an aggregate issue size of $546 million. In addition, Infineon (Munich) is providing an over-allotment option of 6.3 million ADSs that can be placed in the offering.
Investors yawned during the IPO. According to reports before the official announcement on Tuesday, the asking price for Qimonda's shares was being reduced from earlier plans of $16-to-$18 per share. Investment banks running the IPO were having a tough time selling the Qimonda deal to investors, according to the reports.
By: DocMemory
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