Host Of Companies Win In Strong DigitalGlobe IPO (DGI, MS, OZM, ORB, GEOY)

DigitalGlobe is set to  open for trading this morning in another highly anticipated initial public offering.  The satellite imagery company will trade on the NYSE with the ticker “DGI.”  The IPO was priced at $19.00 for some 14.7 million shares.  Morgan Stanley (NYSE: MS), Och-Ziff Capital Management (NYSE: OZM), Orbital Sciences Corporation (NYSE: ORB) are among the public companies which are all listed as shareholders of DigitalGlobe.

The lead underwriters are listed as Morgan Stanley and J.P. Morgan Chase & Co., and co-managers are listed as Citigroup, Merrill Lynch, and Jefferies.

The pricing is technically above the $16 to $18 per share price range we had previously indicated.  The company has two high-resolution satellites for detailed mapping and plans to launch a third satellite later this year. If you want a direct comparison, the company competes head to head with GeoEye, Inc. (NASDAQ: GEOY).

Revenues were $106.8 million in 2006, $151.7 million in 2007, and $275.2 million in 2008.  Be advised that about 70% of the revenues were from the US government.  Two other customers are Google, Microsoft, and Garmin.

Early indications are said to be north of $20.00, although that may rise or fall into the opening of this IPO.

JON C. OGG