THIS ANNOUNCEMENT INCLUDING ITS APPENDICES AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BREACH ANY APPLICABLE LAW OR REGULATION.

THIS ANNOUNCEMENT, INCLUDING THE APPENDICES TO THIS ANNOUNCEMENT, IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ITSELF CONSTITUTE A PROSPECTUS, AN OFFERING MEMORANDUM OR AN OFFER FOR SALE OR SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY.  THIS ANNOUNCEMENT AND THE APPENDICES DO NOT CONSTITUTE OR CONTAIN ANY INVITATION, SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO SUBSCRIBE FOR, OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF THE COMPANY IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. 

THIS ANNOUNCEMENT SHOULD BE READ IN ITS ENTIRETY. IN PARTICULAR, YOU SHOULD READ AND UNDERSTAND THE INFORMATION PROVIDED IN THE APPENDICES INCLUDING APPENDIX II WHICH CONTAINS THE TERMS AND CONDITIONS OF THE PLACING.

THIS ANNOUNCEMENT INCLUDING THE APPENDICES CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF REGULATION (EU) NO 596/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL OF 16 APRIL 2014 ON MARKET ABUSE (MARKET ABUSE REGULATION) AS RETAINED AS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMENDED.

UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

Cardiff, UK
27 April 2026

IQE announces investment from Strategic Partner, Subscriptions, Proposed Placing and Retail Offer

  • Strategic investment and long-term supply agreements signed with key customer
  • Total investment in IQE of £81 million, including reinvestment of approximately £23 million from redemption proceeds from existing convertible loan notes
  • Conclusion of Strategic Review

IQE plc (AIM: IQE, "IQE", the “Company” and, together with its subsidiary companies, the "Group"), a leading global supplier of compound semiconductor wafer products and advanced material solutions, today announces a strategic investment from MACOM Technology Solutions Inc. (the “Investor” or “MACOM”), and other existing shareholders raising gross cash proceeds of approximately £81 million in aggregate (together, the “Fundraising”).

MACOM is a global semiconductor manufacturer and an existing customer of IQE.

Jutta Meier, CEO of IQE, commented:

“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.”

Fundraising Highlights

  • The Fundraising comprises:
    • A subscription of 151,515,151 new ordinary shares in the Company (“Ordinary Shares”) by the Investor (the “Investor Subscription Shares”) at a price of 19.8 pence per Ordinary Share (the “Issue Price”) being the 2 month VWAP ending on the date prior to the date that the Group entered into the non-binding term sheet with the Investor in March 2026, raising gross proceeds of £30 million (the "Investor Subscription");
    • The issue of £15 million of new secured zero-coupon convertible loan notes to the Investor convertible at the Issue Price (the “Investor Convertible Loan Notes”) (together with the Investor Subscription, the “Investor Investment”);
    • The redemption by the Company of the existing convertible loan notes issued by the Company on 13 March 2025 (the “Existing Loan Notes”) and reinvestment by the existing noteholders of a majority of the proceeds at the Issue Price by way of subscription for 115,011,962 Ordinary Shares (“Existing Noteholder Subscription Shares”) raising gross proceeds of £22,772,369.75, subject to and conditional on the Investor Investment (the “Existing Noteholder Subscription”);
    • A placing (the “Placing”) of new Ordinary Shares at the Issue Price raising gross proceeds of £11 million (the “Placing”) to be conducted by way of an accelerated bookbuild process (the “Bookbuild”) which will commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix II to this Announcement and subject to and conditional on the Investor Investment and the Existing Noteholder Subscription. A further announcement confirming the closing of the Bookbuild is expected to be made in due course; and
    • A retail offer through Retail Book Limited (“RetailBook”) for new Ordinary Shares at the Issue Price (the “RetailBook Offer Shares”) of up to £2 million to be made on terms outlined in a separate announcement (the “Retail Offer”). The Retail Offer will be subject to and conditional on the Placing.
  • Both the Placing and the Retail Offer are expected to be open to existing shareholders of the Company (“Shareholders”) only.
  • The proceeds of the Fundraising will be used to repay existing bank debt, redeem the Existing Loan Notes and strengthen the balance sheet, ensuring the Group has a strong capital position from which to fund operations and investments in its core technology.
  • As a result, the Company’s board (the “Board”) is ceasing its Strategic Review and following this announcement, IQE is no longer considered to be in an "offer period" as defined by the City Code on Takeovers and Mergers (the “Code”).
  • Alongside the Investor Investment, IQE and the Investor will enter into long-term strategic supply agreements (the “LTSAs”) on completion of the Investor Investment, enabling scalable, high-volume manufacturing across key growth segments.
  • The Issue Price represents a discount of approximately 10.1% to the 12 month VWAP ending on 24 April 2026, being the latest practicable date prior to the publication of this announcement, and a discount of approximately 58.4% to the closing mid-market price of 47.6 pence per Ordinary Share on 24 April 2026, being the latest practicable date prior to the publication of this announcement.
  • The Fundraising is conditional, inter alia, on the passing of resolutions by shareholders of the Company (the “Fundraising Resolutions”) at a general meeting of IQE to be held at the offices of White & Case LLP at 5 Old Broad Street, London EC2N 1DW at 9:30 a.m. on 15 May 2026 (the “General Meeting”) and on the Investor obtaining prior clearance under the National Security and Investment Act 2021 and Law Decree No. 21 of 15 March 2012 converted with amendments by Law No. 56 of 11 May 2012 (Italian foreign direct investment legislation). No part of the Fundraising is being underwritten.
  • The Directors consider the Fundraising Resolutions to be in the best interests of Shareholders and recommend Shareholders vote in favour of the Fundraising Resolutions, as those Directors that hold Ordinary Shares in the Company intend to do.
  • The holders of the Existing Loan Notes (the “Existing Noteholders”) who hold Ordinary Shares, amounting to, in aggregate 284,518,825 Ordinary Shares, approximately 29.1% of all shares and votes in the Company, have, pursuant to the Existing Noteholder Subscription Agreements, undertaken to vote in favour of the Fundraising Resolutions in respect of their respective holdings.
  • Should the Fundraising Resolutions not be approved by shareholders of the Company, no element of the Fundraising can complete and IQE will not receive the proceeds from the Fundraising. In such circumstances, the Company would be required to obtain alternative funding to meet its short-term liquidity needs and its financial position and prospects would be adversely affected were such funding not available
  • Following its investment, the Investor will be entitled to appoint two non-executive directors to IQE’s Board of Directors pursuant to the terms of a board appointment agreement (the “Board Appointment Agreement”).


Mark Cubitt, Chair of IQE, commented:

“This is an incredibly exciting time for IQE. I am pleased we have concluded the Strategic Review after a thorough process, achieving a fantastic outcome for all stakeholders. Today's announcement is a recognition of the intrinsic value of the Company and its importance in key growth segments. This fundraise removes debt pressures and leaves the Group with a capital structure to enable future growth.”

Stephen Daly, Chief Executive Officer of MACOM, commented:

“As a longstanding customer, MACOM believes this transaction will allow IQE to realize its full potential in technology, operational execution and financial performance.”

Contacts:

IQE plc
+44 (0) 29 2083 9400
Jutta Meier
Mark Cubitt
Amy Barlow           

Peel Hunt (Sole Bookrunner, Nomad and Joint Broker)
+44 (0) 20 7418 8900
Ben Cryer
Kate Bannatyne
Adam Telling
ECM Syndicate: Sohail Akbar, Nicolas Wilks

Deutsche Numis (Joint Broker)
+44 (0) 20 7260 1000
Hugo Rubinstein
Iqra Amin 

Lazard (Financial Adviser)
+44 (0) 20 7187 2000
Cyrus Kapadia
Keiran Wilson

Headland Consultancy (Financial PR)
+ 44 (0) 20 38054822
Andy Rivett-Carnac: +44 (0) 7968 997 365
Chloe Francklin: +44 (0)78 3497 4624

ABOUT IQE

http://iqep.com

IQE is one of the leading global suppliers of advanced compound semiconductor wafers and materials solutions that enable a diverse range of applications across:

  • Smart Connected Devices
  • Communications Infrastructure
  • Automotive and Industrial
  • Aerospace and Security

As a scaled global epitaxy wafer manufacturer, IQE is uniquely positioned. IQE supplies the global market and is enabling customers to innovate at chip and OEM level. Through the Group’s intellectual property portfolio including know-how and patents, it produces epitaxy wafers of superior quality, yield and unit economics.

IQE is headquartered in Cardiff UK, with employees across manufacturing locations in the UK, US and Taiwan, and is quoted on the AIM Market of the London Stock Exchange.