X-Fab plans Paris IPO

March 07, 2017 // By Peter Clarke
X-Fab Silicon Foundries SE (Erfurt, Germany) is planning to raise about €250 million (about $265 million) to fund acquisitions by way of an initial public offering of shares on the Euronext market in Paris, according to reports.

In total the IPO could raise as much as €500 million (about $530 million) but only half of this would come to X-Fab. The new shares issued are to be valued at approximately €250 million while a secondary offering will consist of shares currently held by minority shareholders X-Fab and therefore cash will go to those shareholders rather than being available to X-Fab.

The pricing of the IPO will happen later this month, the reports said.

X-Fab is majority owned by Xtrion NV (Tessenderlo, Belgium) which is essentially an investment vehicle for Rudi De Winter, CEO of Xtrion and X-Fab, his wife Francoise Chombar, who is CEO of sister company Melexis NV (Ieper, Belgium), and long-time partner Roland Duchatelet.

The Malaysian state of Sarawak has been a shareholder in X-Fab since the company took over a wafer fab in Kuching through a merger of 1st Silicon (Malaysia) Sdn. Bhd. and X-Fab Semiconductor Foundries AG in 2006. That holding stands at 35 percent, according to a Bloomberg report.

Sarawak Technology Holdings plans to sell some of its shares at the IPO while 2 percent stakeholder TDK-Micronas plans to sell all its shares, the report said. De Winter and his two partners hold 61 percent of the company and plan to keep their shares, the report quoted De Winter as saying.

The investment from Sarawak, which started in 2006, can be viewed as replacement for a planned IPO by X-Fab that was pulled in 2004 (see X-Fab cancels IPO due to lack of demand).

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