LONDON MEMS-foundry Silex Microsystems AB is issuing new shares worth SEK 150 million (about $25 million) to fund expansion of its manufacturing capacity.
The new issue is being subscribed to by Priveq Investment and Northzone, both thereby becoming new owners in Silex (Järfälla, Sweden). CapMan, currently the company’s principal owner, is also participating in the new share issue.
”Silex is ready for a stock exchange listing, which we considered our main financing alternative for a long time. But due to the current stock exchange climate we have chosen to put our efforts into continued development outside the stock exchange,” says Silex chairman Johan Siberg.
In 2007, Silex increased sales by 77 percent to SEK 167.1 million (about $27.2 million), with operating profit improving to SEK 11.3 million (about $1.8 million).
Funds generated by the new issue will go towards a new production line that will increase Silex’s manufacturing capacity five-fold. Capacity expansion is necessary to meet customer demand and will also reduce manufacturing costs for large volume production.
Silex is an independent MEMS foundry that started operations in 2000 and has more than 70 customers, of which ten are large volume customers.