iQIYI Eyes Hong Kong Secondary Listing To Raise Up To US$300 Million
The Nasdaq-listed company, controlled by Baidu, has hired Bank of America, China International Capital Corp (CICC) and JPMorgan as advisers. iQIYI is expected to file its application in the third quarter, with the listing potentially taking place before the 2026 Lunar New Year in February.
The move comes as an increasing number of Chinese firms seek listings in Hong Kong, partly to hedge against the risk of being delisted from US exchanges amid ongoing geopolitical tensions. This trend has pushed Hong Kong ahead of New York in terms of listing volumes this year.
With a market value of around US$2.2 billion, iQIYI is China's second-largest video streaming service after Tencent Video. Shares in the company surged more than 20% on Monday after regulators announced measures to support quality content creation, though the stock remains about 30% lower than a year ago. Last year, it plunged nearly 60% on the back of shrinking revenue, subscriber challenges, weaker advertising demand and foreign exchange losses.
Analysts expect iQIYI to report second-quarter revenue of 6.6 billion yuan, an 11.2% year-on-year decline, according to LSEG data.
iQIYI, as well as the banks involved, declined to comment on the planned listing.
Reuters
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