Published By : 30 Mar 2018 | Published By : QYRESEARCH
iQiyi, a China-based Netflix-style video streaming service, debuted recently at NASDAQ. However, the share of the Baidu Inc. controlled company declined a bit on its debut trading session after it raised US$2.25 bn in its U.S. initial public offering (IPO). On Thursday March 29, 2018, the stock opened at US$18.20 in New York. The company sold 125 mn U.S. depositary shares at a price of US$18 a piece, which stood at the middle of the marketed array.
The shares traded down around 1.1% at 13:19 hrs. to US$17.80, offering iQiyi a market valuation of approximately US$12.6 bn. The chief executive officer (CEO) at iQiyi, Yu Gong, stated in an interview he is not worried about the short-term changes in the share price, as the firm is aiming to be one of the leading entertainment player in the long run. “Right now, the share price does not matter, when looking from an 8 or 10 years forecast period,” Gong added further. The main concern of the company is the long-term trend in the entertainment industry and economic condition in China.
iQiyi is the biggest Chinese video streaming service, which have gone public. It is pursuing a significantly expensive battle for viewers against Youku Tudou, a video streaming platform by Alibaba Group Holding Ltd. and Tencent Video. The capital garnered will be majorly spent on procuring and making the content required to attract more customers, and researching novel technologies.