Siltronic, electronics subsidiary of Munich-based Wacker Chemie and the world's third-largest maker of the silicon wafers used in semiconductor chips, aims to raise more than €150 million from an initial public offering planned to take place before the European summer holidays.

The German wafers producer said it will issue new shares as part of an equity increase, while parent Wacker will separately sell existing shares in the company to private and institutional investors on the German and Luxembourg stock market. Shares also will be offered for subscription in private placements outside the stock market.

Wacker intends to retain a majority stake in the electronics offshoot, at least for the short term.

Siltronic said it would use proceeds from the listing to reduce its debt. In a statement, CEO Christoph von Plotho said the company has "worked hard" to prepare for the ipo, implementing cost cuts totaling €135 million over the past two years.

Like its rivals in other countries, foremostly Japan, the Munich company has struggled with falling prices for silicon as personal computer markets have matured, limiting demand for microchips.

The worldwide silicon wafer market peaked at around $12.5 billion in 2007 but sales have plunged by more than a third since then, according to figures compiled by Gartner Inc. The market collapse has triggered a wave of consolidation in the global industry, necessitating plant closures at Siltronic.