PHOENIX -- Nine months after spinning out of Motorola Inc. as an independent company, On Semiconductor today launched a $480 million initial public offering. A total of 30 million shares began trading on the Nasdaq stock exchange at $16 each under the symbol "ONNN."
On Semi's price zoomed as high as $26.50, or 60% above the opening price, before settling back at about $21 in late-afternoon trading.
Prior to the IPO, On Semiconductor this week reported a net income of $25.5 million on product revenues of $451.1 million in the first quarter of this year. Product sales were up 21% from $373.3 million in the same quarter last year, when the company was part of Motorola's Semiconductor Products Sector. The operation has a net income of $4.5 million in Q1 of 1999, according to On Semiconductor.
In early August, On Semiconductor was formed with a $1.6 billion buyout by management and a private investment company (see Aug. 5, 1999, story). The Phoenix chip supplier claims to be the world's largest manufacturer of discrete semiconductors, standard analog circuit and standard logic devices.