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NEW YORK (AP) -- Chinese digital advertising company AirMedia Group Inc. boosted the expected price range of its planned initial public offering of 15 million American Depositary Shares, according to a Securities and Exchange Commission filing Monday. AirMedia now anticipates the IPO will price this week between $12 and $14 per ADS, compared with the previously expected range of $9 to $11. The change also raises the expected net proceeds to the company to about $138.5 million after fees and expenses, from $105.7 million. The estimated proceeds assume an offering price of $13 per ADS. The company plans to use the funds from its portion of the IPO for capital expenditures and other general corporate purposes, which may include acquisitions. AirMedia will offer 11.75 million ADSs and a stockholder, Global Gateway Investments Ltd., will sell 3.25 million ADSs. Each ADS represents two ordinary shares. AirMedia manages a digital media network in China dedicated to airport advertising. The company operates more than 2,000 digital TV screens in airports and places its programs on more than 16,000 screens on airplanes. The company also offers advertisers other media platforms in airports, such as digital frames, light box displays, 360-degree LED displays and 3D displays. AirMedia combines advertising content with news, weather, sports and comedy clips in its digital television programs. The company has contracts to operate digital TV screens in 52 airports and to place its programs on the routes operated by nine airlines. AirMedia's digital TV screens are currently located in 37 airports in China, including the country's five largest airports. For the six months ended June 30, AirMedia reported income of $4.1 million, compared with $917,000 in the first half of 2006. Net revenue for the period more than doubled to $15.9 million from $6.7 million in the prior-year period. Morgan Stanley and Lehman Brothers are serving as the IPO's lead underwriters. CIBC World Markets and Susquehanna Financial Group are also underwriting the offering. The underwriters have an option to buy up to 2.25 million additional ADSs from the company and a selling shareholder to cover any overallotments. AirMedia plans to list its shares on the Nasdaq Global Market under the symbol "AMCN."
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