Member Info for Alessandro

@JungleVIP

I think we are already trading at post-placing price (i.e. the effect of the dilution is front-loaded, those who bought at the placing price have already banked on the arbitrage and waiting for the shares to be allotted to restore their exposure to the investment).

There is strong reason for being back in the high 60s, with would equate about 80p pre-placing.

But I appreciate some people are holding back fearing a slump when those shares hit the market. At a small risk, there is a small (very small actually) chance that an offeror comes forward in the next few days to bid for an all-share takeover (before shareholders deliberate on the placing, hence before MACOM becomes a 'heavy weight' shareholder, which could veto any future acquisition).

I suspect something leaked from the Lumentum Q3 update.

I don't understand why the market is so negative leading to the FY results (May 7th).

The price was already factoring in the Nike slump in popularity, discretional spending down, youth unemployment (not as bad as spoken about), tariffs. The new 'excuse' for poor performance is the Iran war, but can't add any more negativity than already priced in.

Pentland loves Regis, there must be something good he is doing.

@Beamer21

Thanks for the reminder. Worst news they can put out there is if they have a plan to become self-sufficient with EPI production. Best they can say is that they are in LTSA with IQE for the EPI.

MT100 why salty about the 20p? If you were a bit earlier you could have had the shares for 5p.

Lol

Keypoint dumping at 36p the day after buying at over 50p.

Buy high - sell low strategy .

Do not ever let them manage your money guys.

I missed the email from HL. Problem is that I feel I am overinvested here and I preferred to stay put. Foolishly of course.

The resiliance of the share price is quite remarkable today, despite all the negativity is hold up well. We are only seeing the dilution being priced in. We may swing either way but I take my guess it will touch recent highs in the next few weeks.

@Cheapsharesboy

I am sure the price was not agreed just in the past week, based on stock volatility.

We have to be happy that the placing was negotiated at 20p, the share price hit 5p not long back. Without the recent rise, the deal would have not happened in the terms we have seen last night.

I'd like to know what happened behind closed door. Did Lumentum made an offer to IQE?

With IQE accepting the offer from MACOM it is quite clear that other offer on the table were less attractive.

The tone of CEO is positive (how else anyway):

This proposed transaction is transformational for IQE. The investment from MACOM and other existing shareholders will provide the balance sheet strength to allow us to capitalise on the opportunities in front of us, while maintaining our unique global footprint. We are now better positioned than ever to execute on our growth strategy, including in key technologies such as Indium Phosphide (InP) and Gallium Nitride (GaN). We look forward to delivering value for shareholders with continued fiscal rigour and by serving our global customer base through operational excellence

The trading update is not bad:

Revenue for FY 2026 is expected to exceed 20% growth year-on-year, with strong order book visibility into H2.

Revenue up 20% year-on-year, meaning about £120 millions for 2026.

With a price to sale ratio of 2-4 a reasonable market cap could be in the region of £240-480m.

I am not sure how much room we have for share price growth, unless the 20% growth can be sustained or exceeded in the years ahead.

Any thoughts?

Bounces are met with more selling pressure.

Volatility will push it lower over the course of the day.

Just for transparency, SauTrade is me, just my other account I can access from my work phone. Cheers.

@Thunder2040

Future earnings, of course. Unless you believe IQE will never make a dime in profits. Fair view, possible.

I'd like to think IQE will turn profitable in 2026/27. We have the green shoots, now we have no interest cost, which helps.

Iqepf trading for 77 cents in the US (roughly 57p)

Enjoy the ride tomorrow boys.

Guaranteed supply does not mean exclusive supply.

IQE has a mega fundary in Wales and factories in the USA and Taiwan.

I highly doubt they will absorb the full capacity of these factories.

People need to take a math course if they think the placing will reduce the share price to the placing offer price.

Tomorrow keep an eye open for an RNS. We need to know how many shares were issued.

On the back of Macom announcement IQE should tell our side of the story and how it fits with the decision for a fund raise.

Ideally tomorrow either we will have a rosy update or no update at all.

Tiger it all depends on the number of shares issued and how investors see the strengthening of the balance sheet Vs the dilution Vs opportunity cost

The question is why the fund raise.

Is it a problem of no satisfactory bids or a strategic move to retain assets due to order books filling in.

The RNS should have said more about the rationale being the offering.

How many shares are being issued?

Probably a sign that the bull run is over. Traders will now bank on trading updates from most parties in the sector until serious investors will make a move in May after IQE trading update.