China’s Baidu has announced the pricing of the initial public offering by its subsidiary iQIYI of 125,000,000 American Depositary Shares (ADSs), each representing seven Class A Ordinary Shares of iQIYI, at a price of USD 18 per ADS for a total offering size of USD 2.25 billion, assuming the underwriters do not exercise their option to purchase additional ADSs. The ADSs have been approved for listing on the NASDAQ Global Market. Baidu has subscribed for, and has been allocated by the underwriters, 8.33 million ADSs in this offering at the initial public offering price.
The underwriters have been granted an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an additional 18.75 million ADSs. Goldman Sachs (Asia), Credit Suisse (USA) and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint bookrunners for the offering. The co-managers of the offering are China Renaissance Securities (Hong Kong), Citigroup Global Markets, and UBS Securities.
