Other reporting services haven’t carried the underwriting because it is a small-cap offering. The company is out of China and, if all goes according to plans, its stock will be traded on the NYSE Alternext US (formerly known as the American Stock Exchange) on Thursday morning. Its debut is scheduled just four days before the Chinese New Year, when celebrations will usher in the Year of the Ox.
Plugging into China
NIVS IntelliMedia Technology Group (NYSE-ALT: NIV proposed), based in Huizhou, in the Chinese province of Guangdong, is a manufacturer of audio and video consumer products. The company’s products include digital audio systems, televisions, digital video broadcasting set-top boxes and DVD players, as well as peripheral and accessory products such as remote controls, headphone sets and portable entertainment devices.
NIVS plans to price 550,000 shares at $3.25 to $4 each to raise $1.99 million. It is expected to start trading on Thursday, Jan. 22, 2009.
For the year ending Dec. 31, 2007, NIVS reported net income of $8.5 million on revenues of $77.6 million, compared with net income of $5.2 million on revenues of $37.7 million for the same period a year ago, as reported in its preliminary prospectus.
For the nine months ending Sept. 30, 2008, NIVS reported net income of $11 million on revenues of $101.1 million, compared with net income of $3.9 million on revenues of $50.7 million for the same period a year ago.
Formed in 1998, NIVS has about 1,650 employees.
The Underwriter: WestPark Capital
WestPark Capital is a Los Angeles-based full-service investment banking and securities brokerage firm. The company reports it has three offices located in China and another one in Hong Kong. Over the last two years, WestPark acted as the sole underwriter for four small-cap Chinese companies going public in the U.S. capital markets, according to available Securities and Exchange Commission records. Initially, each did well in the aftermarket, then got mauled by the claws of the 2008 bear market.
The Previous Deals:
China Shenghuo Pharmaceutical Holdings (NYSE-ALT: KUN) priced its IPO of 400,000 shares at $3.50 each on June 14, 2007. The IPO closed its opening day at $4.73 per share. On Oct. 5, 2007, it traded at its high of $19.75 and closed at 40 cents per share on Friday, Jan. 16, 2009.
China Architectural Engineering (GMS: CAEI) priced its IPO of 737,000 shares at $3.50 each on Sept. 27, 2007. The IPO closed its opening day at $6 per share. On Oct. 4, 2007, it traded at its high of $27.25, and closed at $2.02 on Jan. 16, 2009.
Asia Time (NYSE-ALT: TYM) priced its IPO of 838,000 shares at $3.50 each on Feb. 2, 2008. The IPO closed its opening day at $8.50 per share. On Feb. 21, 2007, it traded at its high of $8.70, and closed at 62 cents per share on Jan. 16, 2009.
Hong Kong Highpower Technology (NYSE-ALT: HPJ) priced its IPO of 603,000 shares at $3.25 each on June 19, 2008. On its opening day, the IPO traded at its high of $8.35 before closing at $6.84 per share, and closed at $3.03 on Jan. 16, 2009.
Ready for the Ox
Back to the present: It may well be auspicious that the first IPO of 2009 is scheduled to come to market just ahead of the Chinese New Year. The Year of the Ox officially begins a week from today, on Jan. 26, 2009. In Chinese astrology, the ox is a symbol of prosperity achieved through guts and hard work. Some may see the ox as a reassuring sign after the devastation on Wall Street in 2008, which was the Year of the Rat.