Memsic prices IPO at $10 a share

Shares of Memsic Inc. are expected to begin trading Friday after its initial public offering of 6 million shares priced at $10 per share, below the expected price range.

Memsic, which develops semiconductors used for motion, direction and pressure sensing applications, expected the IPO to price between $11 and $13 per share.

Based on the offering price, Memsic has a market capitalization of roughly $226.2 million and raised $60 million from the IPO, before expenses.

Memsic plans to use the net proceeds from the IPO to expand an existing manufacturing plant in Wuxi, China, and to fund the construction of a new plant there. The proceeds will also be used for acquisitions, research and development, capital expenditures, working capital and other general corporate purposes.

Memsic uses micro electromechanical, or MEMS, technology to create semiconductor sensors and systems. Its products are used to measure tilt, shock, vibration and acceleration and have a wide range of applications such as in mobile phones, automotive safety systems and video projectors. The Andover, Mass.-based company, which has a subsidiary in China, has shipped more than 25 million units since 2004.

For the nine months ended Sept. 30, the company's earnings increased to $4.7 million, from $806,000 in the first nine months of 2006. During the same period, net sales rose to $18.8 million from $9.2 million.

Citi served as the IPO's sole bookrunning manager. Jefferies & Co., Needham & Co. and Thomas Weisel Partners were also underwriters for the offering.

The underwriters have an option to buy up to 900,000 additional shares to cover any overallotments.

Memsic shares will trade on the Nasdaq Global Market under the symbol "MEMS." (AP)