iQiyi launches US IPO during tough time for tech stocks

Chinese video streaming platform iQiyi Inc. rang the Nasdaq Stock Market opening bell on Thursday, as it marked its 2.25-billion-US-dollar initial public offering (IPO).

The company, trading under the ticker symbol of "IQ," launched at a price of 18 US dollars per share, but fell by 14 percent when trading closed, ending at a price of 15.55 US dollars.

Robin Li, CEO of Baidu (L) and Yu Gong, founder and CEO of Chinese streaming platform iQiyi Inc., pose together following iQiyi's IPO in New York, March 29, 2018.

The IPO came one day after fellow streaming site Bilibili launched its own IPO on Nasdaq. “B-zhan” – as it is affectionately known by users in China – raised 483 million US dollars.

Its share price has fallen by more than two percent since then, with MarketWatch citing a lack of investor demand and ongoing volatility in the tech sector.

Bilibili and iQiyi have launched IPOs during a tough week for the global tech industry.

For iQiyi, the company’s prospectus said the funds raised through the IPO will be used to expand and enhance iQiyi's content offerings, and to strengthen the company's technology.

Chinese tech giant Baidu will retain majority control of iQiyi, and continue to provide the infrastructure needed to operate the platform.

"Content and technology are the twin pillars of the company. We'll invest more in original content creation and also apply advanced technologies including big data and artificial intelligence to improve our platform," Wang Xiaohui, iQiyi's Chief Content Officer, told Xinhua on Thursday.

"We want to build 'China's online Disney'," he said.

According to third-party research firm iResearch, iQiyi is the largest Internet video streaming service in China in terms of average monthly active users.

iQiyi had 60.1 million registered users as of February this year, 98 percent of whom are fee-paying subscribers.

(CGTN)