IQiyi inventory pulls again sharply after huge adverts offering

Shares of iQiyi Inc.
IQ,
-sixteen.sixty seven%
plunged 17.2% in afternoon buying and promoting Tuesday, placing them on observe for the largest one-day drop in 10 months, after the China-primarily based streaming-video agency took benefit of a current surge in prices to announce a huge inventory offering. the agency said earlier than the open that an offering of seventy six.5 million American depositary shares (adverts) priced at $5.ninety per adverts, for internet proceeds of $442.three million. That represented about 10.zero% of iQiyi’s current market capitalization of about $4.forty 4 billion. the agency said it plans to make the most of the proceeds from the offering for working capital capabilities, collectively with paying its debt obligations. the agency additionally granted the underwriters of the equity offering 30-day selections to buy as a lot as eleven.475 further adverts to cowl overallotments. Even with the selloff, the inventory has nonetheless rocketed 137.zero% over the previous three months, whereas the iShares China huge-Cap ETF
FXI,
-2.06%
has rallied 26.2% and the S&P 500
SPX,
-zero.12%
has gained eight.eight%.

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