iQiyi Inc launched $2.4 billion U.S. initial public offering

Vastavam web: Chinese video streaming service provider iQiyi Inc, a unit of search engine giant Baidu Inc, has launched an initial public offering in New York worth up to $2.4 billion, seeking to expand its range of content.The listing is expected to give the firm extra financial muscle as it squares off against rivals in the Chinese market, including Alibaba Group Holding Ltd’s service Youku Tudou Inc.

Underwriters have an option to sell an additional 18.75 million shares, which if exercised in full could bring the value of the deal to about $2.7 billion.IQiyi, which will list on the Nasdaq, said it expects to use about half of the proceeds to broaden and enhance its content offering while 10 percent would be earmarked to strengthen technology. The rest would go towards general corporate purposes.

IQiyi saw its 2017 revenue jump to 17.38 billion yuan ($2.7 billion), a gain of 55 percent over the previous year. It made a net loss of 3.74 billion yuan.Bilibili, another Chinese video streaming company, also set tentative pricing for its New York listing, seeking to raise as up to $525 million.