Once again rumours are spreading about the IPO of Chinese online video site Tudou. A Bloomberg News source reported that Tudou will list at US$29 and issue 600 million shares, for a valuation of US$174 million.
According to an unnamed source, Tudou will go public this evening on NASDAQ in the U.S. under the ticker symbol “TUDO”. This comes after months of turbulence with profit downgrades, competition squeezed above from Youku and below from Qiyi, a potential acquisition from Baidu.
The IPO price is lower than their competitors listing price, mainly due to the volatile stock market, scaring some investors away. The capital injection from the listing will be reportedly used for technology upgrades, bandwidth expansion and increase access to copyrighted video content.
Underwriters of the IPO will be Credit Suisse and Deutsche Bank.