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A money-losing semiconductor company raised $600 million Wednesday and created a market where insiders will unload another $100 million of stock in the biggest tech IPO of the year.

AMIS Holdings

(AMIS)

, the parent company of AMI Semiconductor, raised $600 million by pricing 30 million shares at $20 apiece. Demand was strong enough that the underwriters, led 1999-style by CS First Boston, bumped up the number of shares from 25 million.

The pricing values the whole company in the neighborhood of $1.5 billion, which is another way of saying that more than 40 million additional shares worth of dilution remain in private hands. This from a company that in the six months to June 28 turned $117 million in revenue into a $5.5 million loss. According to pro forma figures that account for a recent acquisition, the loss swells to $36.7 million on revenue of $211 million before a preferred dividend adjustment.

The details were in an Aug. 15 filing with the

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Securities and Exchange Commission

.

Part of the IPO proceeds and a $125 million term loan AMI signed will be used to completely redeem a $415 million preferred series. The money will also be used for various forms of debt reduction.

The stock is up 75 cents to $20.75 in early trading.

AMI Semiconductor designs and manufactures integrated mixed signal semiconductor products mainly for the automotive, medical and industrial markets.

The managing underwriters of the offering were Credit Suisse First Boston, Goldman Sachs, Lehman Brothers, Merrill Lynch, UBS Investment Bank, SoundView Technology Group and U.S. Bancorp Piper Jaffray. The firms expect to collect about $30 million in underwriting fees for handling the IPO.