Sondrel Holdings PLC, a fabless semiconductor business, has announced its intention to float on London's AIM market.
Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication to a specialized manufacturer.
In a statement on Friday, the company said it will issue 36.4 million shares at a price of 55.0p each, adding that it had received "strong support" from institutional investors and will raise £20.0mln. Cenkos Securities PLC (AIM:CNKS) will act as bookrunner for the offering.
The market capitalisation of the company will be about £48.1mln when admission is expected to take place on October 21, 2022. Sondrel expects to have 87.5 million shares in issue after the IPO, with just over 41% in public hands.
Sondel said it is seeking to raise equity for a number of different purposes, including increasing the number of engineers it employs, accelerating sales in the US, and strengthening the company's balance sheet.
Financially, Sondel noted that it has delivered revenue growth from its inception in 2002 to December 31, 2021, at a compound annual growth rate of 20%. As of July 2022, the company's pipeline of revenue opportunities stood at over £300mln, it added.
Sondel chief executive officer Graham Curren said in Friday's statement: "The IPO will provide us with the chance to raise the Group's profile as a leading designer and deliverer of complex ASICs/SOCs and allow the Group to reach its ambition of £100 million of annual revenue in the medium term."