Shares in iQiyi Inc., a Netflix-style Chinese video streaming service controlled by search giant Baidu Inc., slightly flattened its IPO after the company went public in the US 2 , Had collected $ 25 billion
The stock opened on Thursday in New York at $ 18.20. The Beijing iQiyi sold 125 million US depositary shares at $ 18 each, placing it in the middle of the marketed range.
The shares were traded at 1:19 pm by 1.1 percent. to $ 17.80, giving iQiyi a market valuation of approximately $ 1
Yu Gong, CEO of YuQiyi, said in an interview that he was not worried about short-term price changes because the company was aiming for a lot of entertainment Slow Player
"The stock price does not matter now – be it higher or lower than $ 18 – assuming a horizon of eight or ten years, "Gong said.
"I met Most of them are worried about the long-term trend in the Chinese entertainment industry and economy," he said.
iQiyi is the largest Chinese video streaming service that goes public and is becoming increasingly expensive battle for viewers against Tencent Video and the Alibaba Group Holding Ltd. platform Youku Tudou, which is mainly for purchase and deploying content to attract more users and explore new technologies.
Baidu, Alibaba and [1 9659011] Tencent Holdings Ltd. is attracted to the industry because video is a very "sticky" service that attracts users to their platforms. This in turn means that they can receive more advertising or be converted into customers of other products.
IQiyi's submissions showed that 421 million mobile users went to the service at least once a month, with 126 million logging in at least once a day. It is the most popular Netflix-style video streaming service in China. But the users there are moody thanks to the ease of canceling subscriptions and Tencent Video's own base was only slightly smaller than February, according to QuestMobile and CICC Research.
"iQiyi may need approximately $ 16 billion in new equity or debt," Bernstein analysts led by Bhavtosh Vajpayee told clients in a note before the listing. "The upcoming IPO is just a prelude to the likely continuing appetite for funding." Cling! "
– With support from David Ramli and Jing Yang De Morel