Qimonda AG, the DRAM spin-off of Germany's Infineon Technologies AG, raised $546 million in initial public offering (IPO) on Tuesday, cutting the size of the planned sale by half.
The Munich based company issued 42 million American Depository Shares (ADSs) in the market at $13.00 per share 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.
At a press conference in New York City Wednesday morning Qimonda and Infineon officials said the market environment has been difficult, noting almost half of the IPOs since July 1 withdrawn. But they insisted there were no plans to postpone the IPO.
Kin Wah Loh, president and CEO of Qimonda, said in ar statement that the company had received enthusiastic participation from institutional investors in the U.S and there were no plans to back out.
It is better to gauge the marketplace, said Loh, denying the company ever considered delaying the IPO.
Wolfgang Ziebart, president and chief executive of Infineon, added The target was to execute our strategy, not raise a lot of money.
However, he said the company would consider selling more shares if the company was considering making an additional investment or acquisition.