Cree registers for IPO of Power and RF subsidiary
Cree Inc of Durham, NC, USA, which makes silicon carbide (SiC) and gallium nitride (GaN) wafers and devices as well as LEDs, has submitted a draft registration statement on a confidential basis to the US Securities and Exchange Commission (SEC) for a potential initial public offering of Class A common stock of its Power and RF subsidiary.
The type and number of shares of stock to be sold and the price range for the proposed IPO has not yet been determined, although Cree intends to remain the majority stockholder of the subsidiary post offering. The IPO is expected to commence after the SEC completes its review process, subject to market and other conditions.
The Power and RF subsidiary is raising capital to invest directly in the business to support targeted future growth. The offering should enable Cree’s management to focus on the firm’s LED and Lighting businesses, while also creating a dedicated focus on the Power and RF business. Cree believes that the transaction should allow its shareholders to better realize the full value of both businesses.