The company's memory chip subsidiary Qimonda is to be listed in an initial public offer on the New York Stock Exchange, probably in the second week of August.

The IPO will consist of 63 million American Depository Receipts, or ADRs, of which 21 million will come from the stake held by Infineon.

Another 42 million ADRs will come through a capital increase by Qimonda.

With a price range of between 16-18 dollars per share, the operation is expected to raise 1.0-1.1 billion dollars (788-867 million euros), of which some 300 million dollars will go towards Infineon's coffers.

Qimonda expects to receive proceeds of 672-756 million dollars from the sale of the 42 million ADRs, and intends to spend it on research and development.

The forecasts have decreased slightly because until recently the same overall figure was being mentioned, but in euros.

"I think the price is right and proper," Infineon's finance director Peter Fischl said on Friday, while Infineon president and chief executive officer Wolfgang Ziebart said the group never "gave an estimate of what we are expecting".

Whatever the expectations, news of the imminent listing was not enough to cheer up investors after the company unveiled disappointing quarterly results, prompting the share price to plunge.

Infineon posted a net loss of 23 million euros for its third quarter ending June 30, while analysts had expected a profit. One dealer said the group's quarterly figures were "clearly below expectations".

Core earnings of 49 million euros also missed a market target of 51 million.

Third-quarter sales reached 1.972 billion euros, up from the year-earlier figure of 1.606 billion euros but below analysts' average consensus of 1.989 billion.

Infineon shares fell by 6.84 percent to 8.31 euros on the Frankfurt stock exchange Friday, while the Dax index of leading shares showed a loss of 1.71 percent.

The impending listing is also raising concern about the group's strategy.

Infineon has for some time threatened to sever ties with the memory chip part of the business because it is subject to large fluctuations in demand and prices.

The up-and down nature of the industry has seen the company results seesaw and the memory operations have dragged it into the red more than once.

The separation with Qimonda will see the company "enter a new era", Ziebart said recently. Infineon will initially retain an 80 percent stake, but intends to sell it off at some point, it said.

But news that the IPO would go ahead came just as the group's problem child was beginning to perform well, registering sales of 977 million euros and core earnings of of 100 million euros in the third quarter (April to June).

The two remaining divisions, one which makes memory chips for cars, electronics and industrial use and the other for telecommunications, put in poor performances.

This was a good sign for buyers looking to snap up Qimonda shares but looked bad for Infineon, which is set to lose nearly 40 percent of its sales following the spin-off.

The group will have to breathe new life into its telecommunications business to regain some of its old lustre.

Its biggest client in this regard, Taiwan-based BenQ, has troubles of its own, which means Infineon will have to look elsewhere.

BenQ is a supplier of computer, communications and consumer electronics products.

"Investors and employees alike would like to know how Infineon is going to get back its old stature," the German daily Handelsblatt remarked this week.

"Even after listing Qimonda, Infineon is not going to have peace of mind."

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