QLogic to Sell Shares

Bloomberg News

Semiconductor designer QLogic Corp. plans to sell 2 million shares to raise money for manufacturing expansion and other purposes, according to documents filed with the Securities and Exchange Commission.

The company plans to raise $41.9 million after expenses if the shares sell for $22.38, according to SEC filing. QLogic stock declined 87.5 cents Friday to close at $21.50 a share. The stock sale will increase shares outstanding 34% to 7.84 million shares, the filing said.

The company may use the funds “to secure additional manufacturing capacity,” the filing said. The semiconductor designer has no fabrication facility of its own and depends on contracting with suppliers.


“It’s not our intention to set up a manufacturing facility,” said Thomas R. Anderson, QLogic chief financial officer and vice president of finance. “The funds will be used more to lock up sources of supply.”

Cowen & Co. will underwrite the sale of shares with Prudential Securities Inc. and Morgan Keegan & Co. Inc., the filing said.