Thursday, October 11, 2007

China Digital TV rises more than threefold in U.S. Exchange

Price of China Digital TV Holding's share more than tripled in the first three trading days on New York Stock Exchange (NYSE), thereby obtaining the highest ratings from U.S. investors.

Formerly known as Beijing Novel-Tongfang Digital TV Technology, China Digital TV closed at US$51.08 from its IPO price of US$16 on the third trading day.

The company raised US$192 million from its IPO issuance, exceeding the target of US$150 million. The proceeds will be used to fund R&D, sales and marketing, acquisitions and general corporate purposes.

China Digital had installed its systems with 130 digital TV network operators in China. Net income of the company reached US$12 million in the first half of 2007, compared with US$3.4 million in the same period last year. Its revenue also rose from US$10.4 million to US$21.6 million during the same timeframe.

The company's chairman Lu Zhengxiang and CEO Zhu Jianhua have an equal stakes of 10.3% in the company. In addition, each of them has an indirect interest through China Capital, a shell company.

China Digital TV produces software used in conditional access systems, which is the most important component to support pay-TV platforms, and set-top boxes for digital TV consumers. It also sells smart cards to TV network operators for an access its programs.

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