IQE PLC (AIM:IQE), the semiconductor product developer, rallied close to 10% in early trading on Wednesday after it revealed plans to IPO its Taiwan business.
In a company update, the tech group said it plans to list the Asian operating subsidiary on the Taiwan Stock Exchange, selling a minority stake through a public offering.
IQE said it would retain control of the company, with the cash generated through the raise expected to help fund growth strategies across the company.
Taishin Securities has been appointed financial advisor to assist the IPO, with the first stage of the process expected to begin in the first half of 2025.
Additional information regarding the process is expected to be released in due course, with various regulatory procedures required before the listing can be completed.
Americo Lemos, chief executive of IQE, said: "This is an exciting opportunity for IQE and will accelerate the investment in our strategy for growth as we capitalise on the market opportunities ahead, including in GaN Power.
“A successful IPO of IQE Taiwan will allow us to maximise the value of our asset whilst continuing to offer a secure and resilient supply chain for our global customers."
Shares in IQE are up more than 40% in the year-to-date at 32.3p.