British chip parts maker IQE plans IPO for Taiwan business

IQE Plc said on Wednesday that it is planning an initial public offering (IPO) for its Taiwanese business on the Taiwan Stock Exchange, sending shares in the British chip components maker more than 8% higher.

The company, which specialises in ‘epi-wafers’ used in facial recognition sensors in Apple’s iPhones has been benefiting from strong demand due to an AI boom and a growing share of the market in China.

IQE said it intends to list IQE Taiwan on the TWSE and sell a minority shareholding through a public offering and plans to retain control of IQE Taiwan.

“A successful IPO of IQE Taiwan will allow us to maximise the value of our asset,” CEO Americo Lemos said.

The offering will be a two-stage process, with the initial phase of listing on the Emerging Market Board expected in the first-half of 2025, IQE said.

Brokerage Peel Hunt said the proposed minority sale on the TWSE, which it believes is one of the more profitable entities within the group, would help fund the group’s growth strategy, while retaining its global clients and footprint.

“We also believe this IPO makes IQE much more nimble ahead of potential geopolitical storms – in effect providing both a risk hedge and a growth vector,” Peel Hunt analysts added in a note.

IQE has engaged Taishin Securities as its financial advisor for the IPO.

The company last week said it was expecting its first-half revenue to rise by at least 25%.