SiTime Corporation Announces Pricing of Follow-on Public Offering

Rhea-AI Summary

SiTime Corporation (Nasdaq: SITM) has announced a follow-on public offering of 2,000,000 shares of common stock, priced at $225.00 per share. The offering includes 1,000,000 shares from MegaChips Corporation and 1,000,000 new shares. SiTime will not receive proceeds from the MegaChips sale, but expects gross proceeds of $225 million from its shares. The offering is set to close on November 12, 2021. Underwriters have an option to purchase an additional 300,000 shares. Barclays, Credit Suisse, and Stifel are the lead managers for this offering.

Positive

• Gross proceeds of $225 million expected from the offering.
• Strategic partnership with MegaChips Corporation.
• Potential for growth with new capital infusion.

Negative

• No proceeds for SiTime from MegaChips' shares, limiting funding potential.
• Shareholder dilution from the issuance of new shares.

SANTA CLARA, Calif., Nov. 09, 2021 (GLOBE NEWSWIRE) -- SiTime Corporation (Nasdaq: SITM), a leader in MEMS timing, today announced the pricing of its follow-on public offering of 2,000,000 shares of its common stock at a price to the public of $225.00 per share, including 1,000,000 shares of common stock to be sold by MegaChips Corporation and 1,000,000 shares of common stock to be issued and sold by SiTime. SiTime will not receive any proceeds from the sale of shares of common stock by MegaChips Corporation. The gross proceeds of the offering to SiTime, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $225.0 million, excluding any exercise of the underwriters’ option. The offering is expected to close on November 12, 2021, subject to customary closing conditions.

SiTime has granted the underwriters a 30-day option to purchase up to 300,000 additional shares of common stock from SiTime at the public offering price, less underwriting discounts and commissions.

Barclays, Credit Suisse, and Stifel are joint lead book-running managers for the offering. Needham & Company, Raymond James, Roth Capital Partners, and William Blair & Company are co-managers for the offering.

A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission on February 16, 2021, and became effective upon filing. SiTime has also filed a preliminary prospectus supplement for the offering. The offering is being made only by means of a prospectus supplement and accompanying prospectus. A copy of the final prospectus supplement, when available, may be obtained from: Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (888) 603-5847 or by email at Barclaysprospectus@broadridge.com; Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, or by telephone at 1-800-221-1037 or by email at usa.prospectus@credit-suisse.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About SiTime

SiTime Corporation is a market leader in silicon MEMS timing. Our programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. With over 2 billion devices shipped, SiTime is changing the timing industry.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to SiTime’s expectations regarding the public offering. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. SiTime cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, that the closing of the offering is subject to the satisfaction of customary closing conditions. Risks and uncertainties relating to SiTime and its business can be found in the “Risk Factors” section of SiTime’s Form 10-Q for the quarter ended September 30, 2021, filed with the SEC on November 4, 2021, and in the preliminary prospectus supplement related to the public offering filed with the SEC on November 8, 2021. SiTime undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in SiTime’s expectations, except as required by law.

Investor Relations Contacts:

Shelton Group
Leanne Sievers | Brett Perry
949-224-3874 | 214-272-0070
sheltonir@sheltongroup.com

SiTime Corporation
Art Chadwick
Chief Financial Officer
investor.relations@sitime.com

FAQ

What is the purpose of SiTime's follow-on public offering?

SiTime's public offering aims to raise $225 million through the sale of its common stock.

When is SiTime's follow-on public offering expected to close?

The offering is expected to close on November 12, 2021.

How many shares is SiTime offering in its public offering?

SiTime is offering 2,000,000 shares of its common stock.

What price per share is SiTime's public offering set at?

The public offering is priced at $225.00 per share.

Who are the underwriters for SiTime's public offering?

Barclays, Credit Suisse, and Stifel are the lead underwriters.