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IMI unit exiting NYSE to cut expenses
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IMI unit exiting NYSE to cut expenses

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A subsidiary of Integrated Micro-Electronics Inc. (IMI), the listed semiconductors and electronics manufacturing arm of the Ayala Group, on Thursday announced plans to delist from the New York Stock Exchange (NYSE) in a move seen to be “economical for the company,” considering the high costs of maintaining its listing.

IMI said the supervisory board of NYSE-listed VIA Optronics AG, a developer and manufacturer of customized display technology based in Nuremberg, also took into account the low liquidity of its American depositary shares (ADS).ADS refer to shares in foreign companies held by US depositary banks and are traded on major American exchanges.

VIA also pointed to the high costs of annually maintaining its NYSE and US Securities and Exchange Commission (SEC) registration as a major reason for delisting.

VIA will likewise terminate its registration with the US SEC and its ADS program.

“VIA further believes that delisting and deregistration, and consequently the suspension of its US SEC reporting obligations, will allow the company to allocate resources more efficiently to execute its current business strategy by enabling its management and employees to focus more on managing its businesses and strengthening relationships with customers and business partners,” IMI said in a stock exchange filing.

IMI acquired in 2016 a 76-percent stake in VIA for 47.4 million euros (around P2.5 billion based on exchange rates that year), saying it was a “unique opportunity to accelerate IMI’s growth.”

VIA plans to file its delisting and deregistration by April 19, marking its last day of ADS trading on the NYSE on or before April 29.It listed its shares on the NYSE, which is composed of at least 2,385 domestic and international companies, in September 2020 under the ticker symbol “VIAO” following a $93.75-million initial public offering.

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IMI did not disclose the 2023 earnings of VIA, noting that it was still subject to “specific disclosure obligations.”“The process for delisting from the NYSE, suspending US SEC reporting obligations and terminating the ADS program is expected to take time, require filings and notifications and compliance with certain requirements. As such, VIA cannot provide assurances yet as to whether or when these actions will be consummated,” IMI said in its disclosure.

IMI widened its net loss last year to $109.2 million from $6.37 million in 2022 due to losses from the sale of its shares in British firm STI Enterprises Ltd.

Revenues, meanwhile, went down by 6 percent to $1.3 billion, driven by the shorter fiscal year of STI. INQ


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