China's Tudou makes Wall Street debut, shares dive

Aug 17, 2011
Pedestrians walk past the New York Stock Exchange in New York City. Shares of China's internet company Tudou fell sharply as the online video company made its debut on Wall Street.

Shares of China's internet company Tudou fell sharply as the online video company made its debut on Wall Street.

Shares in the Shanghai-based company, which raised $174 million with its US initial public offering, were priced at $29.00 on the Nasdaq Stock Market and closed at $25.56, a loss of 11.86 percent on the day.

Tudou, which was founded in 2005 and claims 200 million monthly unique visitors, is trading under the ticker symbol "TUDO." It has a market capitalization of $867 million at the IPO price.

Stephanie Chang of Renaissance Capital said "overall market volatility and risk aversion on behalf of IPO investors" may account for Tudou's slide.

"Though Tudou is an intriguing growth story, it has a high risk profile due to its lack of profitability and the fact that it has lost share to market leader Youku over the past six months," Chang told AFP.

Tudou is the latest Chinese Internet company to look to the US capital market, where investors have been keen to snap up stakes in technology firms based in the world's fastest-growing major economy.

China has the world's biggest Internet population with at least 457 million users.

Tudou rival Youku was listed in New York in December and saw its share price more than double on the first day of trading.

Chinese online dating site Jiayuan and Chinese social network Renren made their debuts on Wall Street in May.

Explore further: Ex-Apple chief plans mobile phone for India

add to favorites email to friend print save as pdf

Related Stories

China video-sharing site Youku files for IPO in US

Nov 16, 2010

China's biggest online video-hosting site Youku.com is seeking to raise up to 150 million dollars in a US initial public offering as it jostles with domestic rival Tudou.com for top position.

Shanda Games IPO gets tepid reception

Sep 25, 2009

(AP) -- Shanda Games Ltd., a Chinese video game company, raised $1 billion Friday in the largest initial public offering of the year.

Recommended for you

Ex-Apple chief plans mobile phone for India

10 hours ago

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

23 hours ago

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

US venture investments highest since 2001 (Update)

Apr 18, 2014

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into a growing number of deals, according to a report due out Friday.

User comments : 0

More news stories

Ex-Apple chief plans mobile phone for India

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...

A homemade solar lamp for developing countries

(Phys.org) —The solar lamp developed by the start-up LEDsafari is a more effective, safer, and less expensive form of illumination than the traditional oil lamp currently used by more than one billion people ...

NASA's space station Robonaut finally getting legs

Robonaut, the first out-of-this-world humanoid, is finally getting its space legs. For three years, Robonaut has had to manage from the waist up. This new pair of legs means the experimental robot—now stuck ...

Filipino tests negative for Middle East virus

A Filipino nurse who tested positive for the Middle East virus has been found free of infection in a subsequent examination after he returned home, Philippine health officials said Saturday.

Egypt archaeologists find ancient writer's tomb

Egypt's minister of antiquities says a team of Spanish archaeologists has discovered two tombs in the southern part of the country, one of them belonging to a writer and containing a trove of artifacts including reed pens ...