Memsic discloses expected terms of IPO

Memsic discloses expected terms of IPO

	Published : Sat, 01 Dec 2007 00:17 By : Agencies Print this Story

NEW YORK (AP) - Memsic Inc., which develops semiconductors used for motion, direction and pressure sensing applications, disclosed the expected terms of its planned initial public offering in a Securities and Exchange Commission filing Friday.

Memsic expects the IPO to total 6 million shares and price between $11 and $13 per share.

Based on the anticipated price range, Memsic would have a market cap of $248.8 million to $294 million.

Assuming an offering price of $12 per share, the company expects to raise net proceeds of about $63.1 million from the IPO, after fees and expenses.

Memsic uses micro electromechanical, or MEMS, technology to create semiconductor sensor and system solutions. Its products are used to measure tilt, shock, vibration and acceleration and have a wide range of applications such as mobile phones, automotive safety systems and video projectors. The Andover, Mass.-based company, which has a subsidiary in China, has shipped more than 25 million units since 2004.

For the nine months ended Sept. 30, the company's earnings increased to $4.7 million, from $806,000 in the first nine months of 2006. During the same period, net sales rose to $18.8 million from $9.2 million.

Memsic plans to use the net proceeds from the IPO to expand an existing manufacturing facility in Wuxi, China, and to fund the construction of a new manufacturing facility there. The proceeds will also be used for acquisitions, research and development, capital expenditures, working capital and other general corporate purposes.

According to the filing, Memsic President and Chief Executive Yang Zhao previously served in various management positions at chip maker Analog Devices Inc., where he was helped develop a potential MEMS product line.

Citi is serving as the IPO's sole bookrunning manager. Jefferies & Co., Needham & Co. and Thomas Weisel Partners are also underwriting the offering.

The underwriters have an option to buy up to 900,000 additional shares to cover any overallotments.

Memsic has applied to list its shares on the Nasdaq Global Market under the symbol 'MEMS.'