iQIYI files for US IPO
Rebecca Hawkes
| 01 March 2018

Chinese streaming video service iQIYI has filed for an initial public offering (IPO) with the US Securities and Exchange Commission.

The initial offering has been set at up to US$1.5 billion, although this is expected to be revised upwards closer to the event. As much as half of the net proceeds will be earmarked for the expansion and enhancement of iQIYI's content offerings.

A subsidiary of Chinese search engine giant Baidu, iQIYI has 50.8 million subscribers and more than 420 million average monthly mobile users. The digital video service offers both original and acquired content, including titles from international studios such as Fox, Disney, Sony, Universal, Paramount, Warner Bros, and Lionsgate. It is also strengthening its library of Chinese content and expanding its distribution channels internationally.

The company noted losses of $574.4M on total revenues of $2.67B last year, iQIYI said in its filing. It has invested heavily in an attempt to gain market advantage over rivals Tencent Video and the Alibaba-backed Youku Tudou.

iQIYI plans to list its American Depository Shares on the NASDA under the symbol IQ. Goldman Sachs, Credit Suisse and Bank of America are leading the IPO.

Last year, 21 Chinese businesses went public on American exchanges, raising a combined total of $3.9 billion, according to Bloomberg.