China's iQIYI slips after announcing $300 million convertible bond offering

IQIYI

20/02/2025 10:43

** iQIYI's  IQ.O  shares down 7% at $2.25 in premarket
trading as Chinese video streaming platform seeks capital raise
    ** Beijing-based IQ announces offering of $300 million
convertible bonds due 2030
    ** 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
    ** The unsecured bonds pay coupon of 4.25% to 4.75% per
year, according to term sheet reviewed by Reuters
    ** IQ stock closed up 5% at $2.42 on Wednesday, giving co
$2.3 billion market cap, according to data compiled by LSEG
    ** Co plans to use proceeds to repay debt and other purposes
    ** IQ shares up 20.4% YTD, after slumping 58.8% in 2024

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