While its revenues have jumped by 55% to $2.7 billion (17.38 billion yuan), iQiyi reported a net loss of 3.74 billion yuan.
iQiyi Inc, a unit of Chinese search engine firm Baidu Inc, has launched its initial public offering in New York, worth up to $2.4 billion, as it seeks to expand its range of content.
As per iQiyi Inc, a video streaming service provider, expects the listing to provide it that extra bit of financial muscle power to fend off competition against its peers, including Alibaba Group Holding Ltd’s Youku Tudou Inc.
As per its filing to the U.S. Securities and Exchange Commission, iQiyi plans on offering 125 million American depositary shares priced in the range of $17 to $19.
Further, 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 around $2.7 billion.
IQiyi, which will list on the Nasdaq, said it expects to use nearly half of its proceeds to broaden and enhance its content offering and has earmarked 10% of the proceeds for boosting its technological prowess. The balance will go towards general corporate purposes.
Further, Baidu, which owns 69.6% of the Netflix-like video platform, will continue to be its controlling shareholder after the completion of the IPO, said iQiyi.
At the end of February 2018, iQiyi had reported a subscriber base of 60.1 million with over 98% being paying members.
Although IQiyi saw its 2017 revenue jump to $2.7 billion (17.38 billion yuan), a gain of 55% over the previous year, it reported a net loss of 3.74 billion yuan.