Investors to reduce stake in NXP Semiconductors

e14news — Thu, 07 Oct 2021 08:58:52 GMT

Current Revision posted to Documents by e14news on 10/7/2021 8:58:52 AM
Several financial investors plan to reduce their stakes in NXP Semiconductors NV through a secondary public offering of approximately 25 million shares - equivalent to around ten per cent of its common stock.

The investors intend to take advantage of a recent rally in the company's share price, WSJ.com reports.

The stock bounced from around 11 euros last August shortly after the firm's initial public offering to nearly 32 euros by the end of February.

It was buoyed by increasing demand for its nearfield communication chips that are used for mobile payments in smartphones.

Meanwhile, new research has revealed that global inventories held by semiconductor suppliers increased to the highest level in two and a half years during the fourth quarter of last year.

IHS iSuppli found that semiconductor suppliers had 83.6 days of inventory at the end of the fourth quarter of 2010, newselectronics.co.uk reports.

Analyst Sharon Stiefel told the news provider: "The sharp increase during the fourth quarter of semiconductor inventory defied expectations of a decline for the period, but the inflated level of inventory could become a concern if semiconductor industry growth falls short of expectations in 2011."