Youku: Chinese YouTube Triples Shares on First Day of Trading
Youku.com Inc, otherwise known as the Chinese YouTube, tripled their shares in their first day of trading on the New York Stock Exchange, putting the leading Chinese internet television company on pace to be the biggest first-day gainer of the year.
The shares jumped from $12.80 to $36 Wednesday after midday trading. If the price says at the current level or higher, Youku would past ChinaCache Internationals Oct. 1 IPO, which prices at $13.90 and closed at $27.15.
"Youku is Chinas leading Internet television company founded on the entrepreneurial vision of Victor Koo and a welcome addition to our global community of listed companies, said Duncan Niederauer, CEO, NYSE Euronext. Youku is offering U.S. investors an opportunity to participate in its growth story.
Although Youkus initial offering of 15.8 million ADS was predicted to price between $9 and $11 apiece, John Fitzgibbon, founder of IPOScoop, told The Associated Press hes surprised the stock isnt trading even higher, considering the prior hype to the stock debut.
"People are looking at it as China's Netflix," he said.
Regardless, the day is a great success for the Chinese online company.
"This is a great day for Youku and our team who have worked so hard to achieve this important milestone," said Youku Founder and Chief Executive Officer Victor Koo. This step will position Youku for future development and growth to be the primary video content provider for Chinese Internet users across all Internet-enabled devices."