China's iQIYI slides after upsized $350 million convertible bond offering

IQIYI

20/02/2025 15:21

(Updates)
    ** Shares of Chinese video streaming platform iQIYI  IQ.O 
plunge as much as 13.2%; last down 8.7% at $2.21
    ** Beijing-based IQ announces pricing of its upsized
offering of $350 million convertible bonds due 2030
    ** Offering boosted from previously announced size of $300
million convertible bonds 
    ** Bond issuance comes as Chinese tech stocks have rallied
in recent weeks amid optimism around DeepSeek AI and thawing in
authorities' approach to internet giants
    ** Initial conversion price of $3.0855 per American
Depositary Share represents a 27.5% premium to stock's last
close
    ** The bonds will bear interest of 4.625% per year, payable
quarterly
    ** IQ stock closed up 5% at $2.42 on Wednesday, giving co
$2.3 billion market cap as of last close, according to data
compiled by LSEG
    ** Separately, IQ announced concurrent repurchases of about
$300 million worth of existing convertible bonds 
    ** As of last close, IQ shares up 20.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))