LONDON – Fabless RF and analog chip company RDA Microelectronics Inc. (Shanghai, China) has filed an F-1 prospectus form for a $100 million initial public offering of stock with the U.S. Securities & Exchange Commission.
The form states the stock would be traded in the form of American Despository Shares (ADSs) in the United States.
RDA was founded in 2004 and shipped its first product in 2005. The diversified product portfolio now includes power amplifiers, transceivers and front-end modules, FM radio receivers, set-top box tuners, analog mobile television receivers, walkie-talkie transceivers, LNB satellite downconverters and Bluetooth system-on-chip. The company was initially backed with $15 million from private equity firm Warburg Pincus and was first included on the Silicon 60 in November 2005.
In its prospectus RDA claims it has been profitable for several quarters and to have made a net income of $11.3 million on sales revenue of $118.4 million in 2009. In the first six months of 2010, the company made a net income of $8.4 million on sales revenue of $76.2 million.
$100M does not sound that excessive considering their sales and profits (P/S about 1, P/E about 10)...but they don't seem to have any novel products...is low cost design enough (I would not call it manufacturing as @chanj just did, they are fabless afterall)...Kris
Although there is no cutting-edge product, RDA can probably manufacturing them with lower cost than other companies. Provided the China market alone is huge, the potential of the company seems high. What would be the capability of Chinese companies, like RDA, impacting the world of electronics?
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