June 14, 2006 – Verigy Ltd., the former semiconductor automated test equipment (ATE) business of Agilent Technologies Inc., opened its initial public offering on June 13 at $15.05, but by day’s end share prices closed down nearly 7% to $14. Nevertheless the firm raised about $128 million in its debut.
Agilent, which now holds approximately 85.5% of shares (worth about $750 million) in its former semiconductor test solutions unit, which includes both its system-on-chip and system-in-package businesses, plans to officially spin off that ownership by October, the end of its fiscal year. Verigy had originally priced its IPO at $16-$18.
In the three months ended Jan. 31, Verigy narrowed its net loss to $16 million from $45 million, with revenues more than doubling to $170 million.