Semi-conductor company STMicroelectronics, which is raising $1.37bn through an equity offering, claims it will be able to boost profitability and sales in 1998. Despite the overall negative situation in the semi-conductor sector, we see in the next quarters of this year a progressive improvement both in turnover and profitability compared to the trend in the first quarter, said Aldo Romano, managing director of STMicroelectronics Srl, the group’s Italian unit. He told reporters that the company was less affected by production overcapacity than others because we offer a very specialized product. STMicroelectronics, formerly SGS-Thomson Microelectronics, plans to invest some of the proceeds of the share issue in the construction of a $300m new generation wafer facility in Crolles, near Grenobles. The $1.37bn share offering cuts the combined stakes of the French and Italian governments to 56% from 70%. The issue, priced at $72.187 a share, was distributed in the UK, France, Italy and the US.
