IPO Pricing: China Digital TV Double Premium (STV)

China Digital TV Holding Co. Ltd. (NYSE:STV) has a premium IPO pricing, after already having raised its price range for a 12 million ADR offering.  The revised higher range was $13.00 to $15.00, and $16.00 per share is the pricing.  Morgan Stanley and Credit Suisse acted as the joint book-runners, and co-managers are Piper Jaffray, Needham, and CIBC World Markets.

China Digital TV provides conditional access systems to the digital television market in China.  The company has installed its systems at 130 digital television networks throughout China.  If you have seen the Chinese stocks this week, you’ll know why the deal price got boosted.  There was strong demand for this IPO ahead of this week, but the parabolic moves on even the smallest headlines or hints may have helped put an even higher premium into the opening price today.

As this is an NYSE offering, shares should start trading shortly after the open today.

Jon C. Ogg
October 4, 2007

Jon Ogg can be reached at [email protected]; he produces the SPECIAL SITUATION INVESTING NEWSLETTER and he does not own securities in the companies he covers.