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RDA Microelectronics (NASDAQ:RDA) priced its IPO yesterday, raising $68 million by selling 7.5 million ADSs at $9, slightly below the midpoint of its proposed range of $8.50 to $10.50.

Business Overview (from prospectus)

We are a China-based fabless semiconductor company that designs, develops, and markets radio-frequency and mixed-signal semiconductors for a broad range of cellular, broadcast, and connectivity applications. According to iSuppli Corporation, an independent research firm, we are the second largest provider of analog application specific standard products (which include radio-frequency and mixed-signal semiconductors) for wireless communications based in Asia Pacific as measured by revenues in 2009. We shipped our first product in 2005, and our diversified product portfolio currently 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.

Offering: 7.5 million ADSs at $9, slightly below the midpoint of its proposed range of $8.50 to $10.50. Net proceeds of $68 million will be used for working capital and general corporate purposes.

Lead Underwriters: Morgan Stanley (NYSE:MS), Credit Suisse (NYSE:CS), Caris & Company

Financial Highlights:

Our revenue increased by 66.1% from $45.9 million for the six months ended June 30, 2009 to $76.2 million for the six months ended June 30, 2010... Our cost of revenue increased by 63.9% from $33.7 million for the six months ended June 30, 2009 to $55.3 million for the six months ended June 30, 2010... Our gross margin increased from 26.5% for the six months ended June 30, 2009 to 27.4% for the six months ended June 30, 2010... Our research and development expenses increased by 17.7% from $7.0 million for the six months ended June 30, 2009 to $8.3 million for the six months ended June 30, 2010, but decreased significantly as a percentage of revenue, from 15.3% to 10.8%, due to our higher revenue... our net income increased significantly from $3.0 million, or 6.5% of revenue, for the six months ended June 30, 2009 to $8.4 million, or 11.0% of revenue, for the six months ended June 30, 2010.

Competitors:

As we target and supply products to multiple markets and applications, we face competition from a large number of firms. We compete with MediaTek in a number of products related to mobile handsets in China as well as with multinationals such as Broadcom, Infineon, and STMicroelectronics that offer a broad line-up of stand-alone and integrated semiconductor solutions. In addition, there are companies that we compete with in one particular product or product family, such as RF Micro Devices (RFMD) and Skyworks in power amplifiers; NXP and Silicon Laboratories in FM radio receivers; Maxim and Zarlink in DVB-S tuners; Maxim, MaxLinear (NYSE:MXL) and NXP in DVB-T tuners; Telegent in analog mobile television receivers; and CSR plc in Bluetooth solutions. As we enter new markets, we may face new competitors.

Additional Resources:

Source: RDA Microelectronics Prices IPO at Midpoint of Range