SunEdison Semiconductor Announces Pricing for Secondary Offering

By Chris Lange Published Jun 25, 10:50AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

SunEdison Semiconductor Ltd. (NASDAQ: SEMI) has just announced the pricing for its secondary offering. Shares will be offered for $18.25 per share, for a total of roughly 15.94 million shares. The offering is valued at about $290 million.

Deutsche Bank and Goldman Sachs are acting as lead book-running managers for the offering. Barclays, Credit Suisse and Morgan Stanley also are listed as book-running managers.

Note that the company will not receive any proceeds from the offering, only the selling shareholders.

The company primarily sells its products to the major semiconductor manufacturers throughout the world, including integrated device manufacturers, pure-play semiconductor foundries and, to a lesser extent, leading companies that specialize in wafer customization.

During 2014, SunEdison Semiconductor’s largest customers were Samsung, Taiwan Semiconductor and STMicroelectronics. It operates facilities in major semiconductor manufacturing regions throughout the world, including Taiwan, Malaysia, South Korea, Italy, Japan and the United States.

ALSO READ: Analyst Sees No Tech Bubble: 4 Stocks That Survive and Thrive

In its filing the company said:

The market for semiconductor wafers is large and growing. According to Gartner, Inc., or Gartner, the merchant semiconductor silicon wafer market in 2012 was approximately $9 billion, in 2013 was approximately $8 billion and in 2014 was approximately $9 billion worldwide and is expected to grow at a 5.5% compound annual growth rate, or CAGR, from 2013 to 2018, reaching approximately $10.4 billion by 2018. This growth in semiconductor wafer demand has been largely attributable to the proliferation of mobile devices such as smart phones and tablets. These devices require semiconductors that are energy efficient, low cost, high performance and highly integrated into a small footprint. Semiconductors offering those characteristics increasingly require EPI and SOI wafers. We believe that our process technology expertise in EPI and SOI wafer manufacturing combined with our capital efficiency provides us with significant opportunities as the markets for EPI and SOI wafers continue to grow.

Shares of SunEdison Semiconductor were down 3.2% at $18.59 Thursday morning. The stock has a consensus analyst price target of $25.20 and a 52-week trading range of $14.25 to $27.93.

Despite shares backing off after the pricing announcement, the stock is still up more than 3% year to date and over 12% higher in the past 52 weeks.

FULL FILING

ALSO READ: Short Sellers Run for Cover in Semiconductors

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.