Baidu-backed streaming-video service provider iQiyi plans US IPO
iQiyi, the Chinese entertainment company backed by Baidu, filed for an initial public offering in the US.
The Beijing-based company filed with an offering size of US$1.5 billion, an initial place holder amount that is likely to change, according to a filing with the US Securities and Exchange Commission. iQiyi is aiming for a public market valuation of as much as US$10 billion, people familiar with the matter said last year.
iQiyi, whose streaming-video service is similar to American rival Netflix, had 50.8 million subscribers at the end of 2017, according to the filing. The company posted a net loss of US$574 million on total revenue of US$2.7 billion last year.
IQiyi’s move towards public markets follows a blockbuster year for Chinese companies listing in the US. Twenty-one businesses went public on American exchanges in 2017 to raise a combined US$3.9 billion, according to data compiled by Bloomberg. That is the most since 2010, when 40 Chinese companies raised a total of US$4 billion.
The company plans to offer Class A shares to the public, while Baidu will hold all of the company’s Class B shares, the filing shows. Baidu currently holds 70 per cent of iQiyi’s shares.
Goldman Sachs, Credit Suisse Group and Bank of America are leading the IPO.
The company has applied to list its American depository shares on the Nasdaq Global Select Market under the ticker IQ.