Americo Lemos’s unexpected exit as CEO of IQE has caused a significant impact on the company’s share price.
- Lemos, who joined IQE in January 2022, left his position immediately, prompting a search for a new leader.
- Jutta Meier has stepped in as interim CEO while retaining her role as CFO, after joining from Intel earlier this year.
- The company’s share price dropped nearly 20%, signalling market concerns over leadership changes.
- The board’s swift decision suggests a strategic move towards cost optimisation and asset management.
In a sudden development, Americo Lemos has departed from his role as CEO of IQE, a prominent player in Wales’ tech industry. This departure, effective immediately, was accompanied by a sharp decline in the company’s stock, shedding nearly 20% of its value. Lemos’s tenure at IQE began in January 2022, marking a relatively short period at the helm.
Jutta Meier, who took on the role of Chief Finance Officer at IQE in January 2024 after her stint at Intel, will temporarily assume the responsibilities of CEO. This interim arrangement comes as the company initiates a rigorous search for a permanent successor to navigate the challenges it faces.
Following the announcement, the market reacted decisively, with IQE’s shares falling to just under 12p. This reflects investor anxiety about the direction of the company amidst changes in its leadership team.
Mark Cubitt, recently appointed as the chair-elect earlier this month, will step into the role of executive chair. His leadership experience includes positions at AIM-Listed Beeks Group and Concurrent Technologies. Meanwhile, Phil Smith, who had been the chair since 2019, will vacate his role while maintaining his board membership.
IQE’s strategic priorities moving forward involve capitalising on its technical expertise to focus on long-term market growth. Immediate efforts will target the execution of the company’s pipeline projects, enhancing cash flow, and considering strategic options like the IPO of its Taiwan operations. Additionally, IQE is assessing ways to optimise its asset portfolio, indicating potential asset sales, such as the Pennsylvania site.
A broker’s note from Panmure Liberum maintains a ‘buy’ stance on IQE shares, setting a target price of 40p. The note implies that Lemos’s departure was a board decision, possibly pointing to a realignment of priorities towards cost and asset optimisation. There’s anticipation of further developments, including the potential sale of assets and strategic funding applications under the CHIPS Act.
Lemos’s sudden departure marks a pivotal moment for IQE as it reassesses its strategy amid market reactions.
