One of the major online video platforms in China, IQiyi, is going public in the United States, aiming to raise a total US$1.5 billion from the Initial Public Offering, Yicai.com reported.
The company submitted its prospectus to the US Securities and Exchange Commission on Wednesday.
According to the company, the main purpose of the listing is to strengthen its brand awareness worldwide, so as to attract and retain outstanding employees by offering equity incentives.
The funds raised will be used for the expansion and enhancement of content and technology, as well as other corporate matters. Some of the funds will be used to acquire products, services and technology.
Its submission showed that annual revenue for the company was 17.38 billion yuan, a rise of 54.6% from a year earlier.
Aside from major revenues in advertising, subscription fees have also become crucial to the company’s main income. By the end of 2017, the number of members was recorded as 50.8 million, a significant driver of paid content revenue.