Shares of Chinese streaming platform iQiyi fell below their initial public offering (IPO) price in the stock’s market debut on Thursday, even as the technology sector rebounded from a sharp sell-off ahead of the Good Friday holiday weekend.
The company, which is majority-owned by Chinese internet search firm Baidu, had opened at $18.20, slightly ahead of the $18 IPO price, but the stock quickly pared gains.
The IPO of the Netflix-like video platform priced on Wednesday in the middle of its $17-$19 per share estimate, generating proceeds of $2.25 billion.
Chief Executive Gong Yu shrugged off any concerns over fluctuations in the stock price. “We are not concerned with short-term volatility,” Gong said in an interview at the Nasdaq. “Long term, you’ll see how much value the IPO creates.”
Major U.S. stock indexes rose more than 1% on Thursday ahead of the Good Friday holiday weekend that will mark the end of a turbulent quarter for Wall Street.
