Freescale Semiconductor Holdings raises $783 million with IPO

Article by Christian Andrei, on May 26, 2011

On the first trading day of Freescale Semiconductor Holdings, its shares rose as investors expected that the demand for automotive chips will help it reduce its debt that compelled underwriters to cut its initial share-sale price.

Trading under the ticker FSL on the New York Stock Exchange, its shares increased 95 cents, or 5.3%, to $18.95 at 12:17 p.m. Based in Austin, Tex., Freescale was only able to raise $783 million in its initial public offering.

This is about 25% lower than what they initially sought. In an interview, CEO Richard Beyer said that all of Freescale’s investors are “ultimately going to do well." He said that Freescale had to reduce its offer price since the "the external market conditions are sketchy."

He admitted though that the company would have wanted a higher price. It was in February that Freescale filed the IPO to sell shares. Back then, it said that proceeds will be used to help shrink its debt, which totaled to about $7.5 billion.

In 2006, Freescale borrowed billions when it was taken private by Blackstone Group LP, TPG Capital, Carlyle Group and Permira Advisers LLP in a $17.6 billion transaction. To break even, Freescale has to have annual sales of about $4 billion.

Beyer said that Freescale’s revenue may drop from its present level of about $4.8 billion and still be able to manage debt and invest in its business. Freescale is the largest supplier of chips to the U.S. automobile industry.

Topics: ipo

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016