Youku raises $203 million on NYSE, share price soaring 169%

10:53, December 10, 2010      

Email | Print | Subscribe | Comments | Forum 

China's leading video broadcasting website youku.com received $203 million capital through its IPO on the New York Stock Exchange (NYSE) Wednesday.

Though Youku has not yet broken even, investors are keen to acquire stocks. The company floated 15,847,700 depositary shares for $12.8 each in its IPO. The opening price was $27 and closing price soared by 169 percent to $34.38 per share. The capital will be used on technology reserves, bandwidth and servers, more video content, new products, marketing and sales.

Youku's monthly page views have already reached 200 million, and its operating revenue in the first nine months this year hit 234.6 million yuan ($35.24 million). But it still suffered a net loss of 167 million yuan ($25.09 million), as its expenses in purchasing bandwidth and video contents were high.

Victor Koo, CEO of youku, said that the company's decision to go public was based on its strategy of building its brand and distancing itself from competitors, and that capital is not the most important thing for the company, as it still has tens of millions of dollars in capital reserves. He also said that going public on the NYSE will give youku a better platform to develop in the next three to five years.

Youku and its competitor tudou.com dominate China's online video broadcasting industry. The two companies both had plans to get listed in the US this year. But a court ordered a freeze of tudou's assets in early November - just one day before the company filed an application for an IPO to the US Securities and Exchange Commission - as Wang Wei, tudou's CEO, was involved in a property dispute with his ex-wife.

Source: Global Times

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese President Hu Jintao (C, front) and other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Wen Jiabao, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang and Zhou Yongkang, walk towards the Monument to the People's Heroes in Tian'anmen Square of Beijing, capital of China, Oct. 1, 2011. China's top leaders laid flower baskets at the monument on Saturday morning to mark the 62th anniversary of the country's founding. (Xinhua/Li Tao)
  • Five-month-old twin girls, An An (left) and Xin Xin, meaning safe and relieved in Chinese and carrying the good wishes of their parents, leave a Shanghai hospital yesterday, less than four weeks after a September 5 surgery to separate the conjoined twins from Zhejiang Province. They were born connected at the liver, chest bone and heart sac, the covering around the heart. Though they shared one liver and used one pericardium, they have their own hearts.
  • Models present cheongsams designed by Chen Yanqin during a fashion show in Yantai, east China's Shandong Province, Sept. 30, 2011. More than 100 creations of cheongsams, a traditional Chinese women's dress also known as mandarin gown or Qipao, were displayed here Friday. (Xinhua/Li Mingfang)
  • Citizens watch fireworks exploding over the Jingtian Lake during a music firework show in Shanghai, east China, Sept. 30, 2011, on the eve of the National Day. (Xinhua/Pei Xin)
  • A member of the media takes a look at a Bluecar, an electric-powered car made by French company Bollore, at a media presentation in Vaucresson, west of Paris, yesterday. The Bluecars have a range of 250 kilometers in urban use and a maximum speed of 130km per hour, and will be available to rent in the streets of Paris under the name of Autolib. The four-seater Bluecars will be positioned at 1,200 stations in the French capital, where customers can pick them up and drop them off, and will be available around the clock. Users must have a valid driver's license and pay a subscription fee to borrow one of the vehicles.
  • Tourists watch a performance about an ancient court trial. (Photo/Xinhua)
Hot Forum Discussion