IPO news: iQiyi IPO could target valuation of up to $10bn

iQiyi is targeting an initial public offering in the US next year, Bloomberg has revealed. The potential iQiyi IPO could value China’s most popular Netflix-style streaming video service at more than $8 billion.

Sources with knowledge of the matter told Bloomberg today that iQiyi, controlled by search giant Baidu, was about to kick off negotiations with banks and deal arrangers and was shooting for a valuation of as much as $10 billion. Baidu wants to continue holding a controlling stake in the streaming video service upon the listing via dual-class shares. The process, however, is in its early stages and the final valuation could change.

iQiyi is the only Chinese service which licenses shows from Netflix, and is already a partner to the US group which has been looking for a way to enter China to help build a global audience for its growing library of exclusive shows.

Reuters meanwhile reported in its coverage of the news that iQiyi had said earlier this year that it had raised $1.53 billion in new funds to compete with rivals in China’s hotly contested online entertainment sector. That investment round included funds from Baidu, Hillhouse Capital, IDG Capital and Sequoia Capital.

News of the potential iQiyi IPO comes after Singapore entertainment platform Sea said that it will be looking to raise $1 billion in an Switch Inc meanwhile aims to raise $550 million in what has the potential to become the third-biggest US technology listing of the year.