Accelerating Memsic Sets IPO Terms
Tilt this. Measure that. You’ll be doing a lot more of both if Memsic has its way. The Andover, MA-based maker of integrated micro electro-mechanical systems, or MEMS, devices, yesterday set the terms of its planned IPO, annnouncing it hopes to sell six million shares at between $11 and $13 per share.
At the mid-price range, excluding fees, Memsic would garner $72 million and have a market cap of just over $270 million. According to its SEC filing the company plans to use the net proceeds to expand its existing manufacturing facility in Wuxi, China, and build a new manufacturing plant there—as well as for R&D, strategic acquisitions (none of which are currently planned), and other general corporate purposes.
Memsic, formed in 1999, builds what it calls “advanced semiconductor sensor and system solutions” based on MEMS and mixed single circuit design that fit on a single semiconductor chip. Its accelerometers, which measure tilt, shock, acceleration, and vibration, are used in applications such as mobile phones, video projectors, and automotive safety systems. In cell phones, for example, they assist with things like image orientation, text scrolling, and gaming control, according to the filing.
Memsic says it plans to trade on the Nasdaq exchanging using the ticker symbol MEMS. According to the SEC filing, the venture-backed company has raised nearly $34 million to date. Investors include Celtic House Venture Partners (which holds a 16.1% pre-IPO stake), the Still River Fund (15.7%), InveStar Capital (13.7%), and the CID Group (5%). Sales for the first nine months totaled nearly $19 million, with a profit of $4.7 million. Last year, sales were $18.8 million. The company has been profitable since 2004.