Tudou,China's second-largest video website will debut on Nadaq Wednesday.[CFP]
Tudou, China's second-largest video Web site, is set to begin trading on the Nasdaq exchange on Wednesday, issuing 6 million American depository shares at an expected price of US$29 per share.
Assuming the shares sell at the midpoint of Tudou's expected price range of US$28-30, the offering will raise as much as US$174 million for the firm. A US$29 share price would value Tudou at US$822 million, about one third of the market value of Youku, its largest rival, which listed on the U.S. stock market in December.
Tudou says it will use proceeds from the IPO to update technology, add bandwidth and purchase video copyright licenses.
Credit Suisse, Deutsch Bank and Oppenheimer acted as underwriters to the IPO.