iQiyi, the video streaming service provider business of leading multinational Chinese technology company Baidu, has filed for an initial public offering (IPO) valued at up to $2.4bn in New York.
Founded in 2010, the internet-based service provider currently has approximately 60mn paying subscribers within its 500mn active monthly users who spend around 6bn hours on the platform each month.
The company is raising the funds in the aim of expanding its content offerings within the Chinese market as it looks to readily compete with rival services such as Alibaba’s Youku Tudou.
The IPO is expected to see 125mn US depositary shares sold at a price of between $17 and $19 each, with iQiyi retaining the option to sell a further 18.75mn shares that could raise the total value of the IPO to as much as $2.7bn.
Baidu currently owns 69.6% of the Netflix-style platform, and will retain its status as the majority shareholder following the completion of the IPO.
iQiyi generated a revenue of $2.7bn in 2017.