Stock of Chinese Online Video Firm Tudou Falls in U.S. Market Debut
Shares of the company, known as the YouTube of China, fell 11.9 percent to $25.56 on their first day on Nasdaq.
NEW YORK - The stock of Tudou Holdings, China’s second-largest online video site, fell 11.9 percent in its U.S. stock market debut Wednesday.
Shanghai-based Tudou, sometimes called the YouTube of China, had priced 6 million American depositary receipts at $29 each in its U.S. IPO, raising $174 million.
The IPO valued the company at $822 million, but the stock, whose Nasdaq ticker symbol is TUDO, fell to $25.56 after going as low as $23.50 and as high as $27.75 intra-day.
While many companies have this month withdrawn or postponed planned IPOs due to the volatile stock market and economic concerns, Tudou went ahead with its U.S. listing.
Rival Youku.com, which went public in the U.S. in December, saw its stock rise 12.9 percent on Wednesday to $27.01, giving it a market value of $3.08 billion. It has traded between $12.80 and $69.95 since its debut.
And another big Chinese online video player, portal operator Sohu.com, lost 3.5 percent of its value on Wednesday to close at $76.25, or a market capitalization of $2.92 billion. Over the past year, it has traded in the $45.81-$109.37 range.