Chinese video sharing website Tuduo plans to raise £105m when it floats on the US stock exchange
The Chinese video sharing website Tuduo plans to raise $174m (£105m) at a valuation of $3.2bn when it becomes the latest internet company to make its Wall Street debut on Wednesday.
Tuduo, dubbed the Chinese YouTube, offered 6m shares priced at $29 each as it prepared to float on New York's Nasdaq stock exchange.
The floatation marks a tentative reopening of the IPO market after financial markets plummeted last week. According to data from Bloomberg, 13 flotations were postponed last week as many newly-public tech companies, including LinkedIn and Yandex, fared worst in the market volatility.
Similar to YouTube, Tuduo shows user-generated videos as well as licensed and in-house content. Tuduo's bigger rival, Yuoko, raised $203m when it floated on the New York Stock Exchange in December.
Shares in Yuoko rocketed more than 100% on its debut, to $42.70 apiece, but have since fallen back to $23.92. Similarly, the Chinese social networking site Renren has seen its stock fall 6.5% since going public in May.
Stephanie Chang, an analyst at US-based IPO research firm Renaissance Capital, said: "Its competitor was successful on the first day but the environment has become more hostile, especially for Chinese companies, but [also] for all IPOs recently. It's a very positive sign the deal was completed."
Tuduo, which is based in Shanghai, has doubled its number of registered users in the past two years, to 90 million at the end of June. However, the six-year-old company's losses have widened. Its net loss in the three months to 31 March was $52m on revenues of $12.1m.
Credit Suisse, Deutsche Bank Securities and Oppenheimer & Co were the underwriters on the Tudou IPO.
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Source: http://www.guardian.co.uk/technology/2011/aug/17/chinese-youtube-to-make-nasdaq-debut
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