LONDON – M/A-COM Technology Solutions Holdings Inc., a vendor of RF and microwave chips and components, has raised about $98 million, after underwriting discounts and commissions, with the launch of an initial public offering (IPO) of shares at $19 each.
M/A-COM (Lowell, Mass.) filed an S-1 form with the Securities and Exchange Commission for an IPO on Monday August 1, 2011, that was reported to be aimed at rising up to $230 million. Nonetheless the company got away at the top end of its priced range of $17 to $19 and has risen since first trading on NASDAQ under the symbol MTSI on Thursday (March 16). The stock price closed at $21.75 on Friday.
A total of 5,556,000 shares was offered by M/A-COM Tech and 444,000 shares were offered by a selling stockholder with usual additional stocks available for over-allotments.
The company made a net income of $751,000 on revenues of $73.0 million in the fourth quarter of calendar 2011, according to the companies updated S1. However in the fiscal year ended Sept. 30, 2011, the company made a net loss of $81.5 million on revenues of $310.3 million. The loss was mainly due to the payment of a special dividend to holders of stock in the company.
M/A-COM said it plans to use $60.0 million of the net proceeds from the IPO to pay the holders of Class B convertible preferred stock a preference payment to which they are entitled. M/A-COM said it plans to use the rest of the money for general corporate purposes, including working capital, and for the acquisition of, or investment in, complementary technologies, design teams, products and companies, although nothing is currently planned.
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