NEW YORK (AP) – Shares of China Digital TV Holding Co., which provides security and access systems to China's digital television market, will begin trading Friday after the company's initial public offering priced at $16, well above initial expectations.
According to Securities and Exchange Commission filings, China Digital originally expected the offering to price between $11 and $13 per American Depositary Share. On Thursday, the company boosted the expected price range to $13 to $15 per ADS
The IPO totals 12 million American Depositary Shares, with each ADS representing one ordinary share.
Conditional access systems allow digital television network operators to control their subscribers' content and services, such as on-demand viewing and pay-per-channel programming.
Analysts have touted the huge growth potential of the company's Chinese market, spurred by a government-initiated transition from analog to digital television transmission.
The company plans to use the proceeds from the IPO for research and development, sales and marketing, acquisitions and general corporate purposes.
Morgan Stanley and Credit Suisse Securities served as the IPO's lead underwriters. Piper Jaffray, CIBC World Markets and Needham & Co. also served as underwriters for the offering.
The company has also granted the underwriters the option to purchase up to an additional 1.8 million ADSs to cover any overallotments.
China Digital shares will be listed on the New York Stock Exchange under the symbol “STV.”