The Beijing-based company filed with an offering size of US$1.5 billion, an initial placeholder 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 Inc, 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 toward 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’s 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% of iQiyi’s shares.
Goldman Sachs Group Inc, Credit Suisse Group AG and Bank of America Corp are leading the IPO. The company has applied to list its American depositary shares on the Nasdaq Global Select Market under the ticker IQ.