Shares of Tudou fall below its offering price on the first day of trading on Nasdaq stock exchange.
Tudou, China's second-largest video site, took a pummeling Wednesday in its first day of trading on the Nasdaq stock exchange, closing below its initial offering price.
Shares of Tudou opened at US$25.11, down 13.4 percent from its offering price of US$29, while its major rivals, Youku and V6, surged more than 20 percent in the lead up to Tudou's listing.
Tudou issued 6 million American depositary shares Wednesday at US$29, raising US$174 million. Calculated at the opening price of US$25.11, Tudou's market value was US$710 million, putting its founder Wang Wei's fortune at US$61.23 million.
Wangwei, former president of Bertelsmann China, created Tudou in 2005. The Web site, which touts itself as a combination of Youtube, Hulu and HBO, provides both licensed television and movie content and self-generated videos.
China's business press carried the story above on Thursday.
