Versum Materials Inc (VSM) Soars on First Day of Trading as Public Company
Shares of Versum Materials Inc (VSM) were up $5.30 or 23 percent to $28.00 per share in Monday’s regular trading session after the company began trading as a public company for the first time on the New York Stock Exchange.
Tempe, Arizona based Versum Materials was formerly the Materials Technologies segment of Air Products & Chemicals Inc. The division began more than 30 years ago supplying delivery systems and materials to the worldwide semiconductor and electronics industries. Versum is a “pure play” in the semiconductor business, providing high purity chemicals, gases and delivery systems, as well as services and materials expertise for the global semiconductor, LED and display markets.
The newly spun-off company participates in six of seven principle semiconductor process steps and is the world’s largest supplier of formulated cleans and etching products, next generation CMP slurries and ultra-thin dielectric and metal film precursors.
The company derived 74 percent of its fiscal 2015 sales from process and advanced materials with 26 percent from delivery systems. Versum’s revenues are 60 percent from Asia, 30 percent from the United States, and 10 percent from Europe.
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Guillermo Novo, President and Chief Executive Officer of Versum Materials said that "today is a long-anticipated day for our customers, partners and team members. We worked hard to get to this point – and we will work just as hard in the years ahead to meet our customers’ needs for next-generation materials, equipment and expertise. As Versum, we will be more committed than ever to collaborating with our customers to make the future possible for them. We will focus on meeting the evolving needs of the semiconductor and other electronics-related industries.”
Air Products first announced they would spin-off their Materials Technologies business on September 17th, 2015. In a press release yesterday, Air Products Chairman and Chief Executive Officer Seifi Ghasemi said that the spin-off, as well as the sale of the its performance materials division to Evonik Industries AG, will place Air Products in a stronger position to develop its core industrial gases business.
Ghasemi, who also is Versum's non-executive board chairman, noted in the press release that “I am confident that Versum Materials has been set up for a successful future, and the team can now fully pursue the goal of being the premier specialty materials provider to the semiconductor industry.” Versum’s stock performance on its first day as a public company was impressive. Nevertheless, stock analysts are divided on the prospects of the spun off company.
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Published on Oct 4, 2016By Jay Hawk