|IQIYI, INC. filed this Form 424B4 on 03/29/2018|
Fair value of our ordinary shares increased from US$1.92 on December 15, 2017 to US$2.57, mid-point of the estimated price range shown on the front cover of this prospectus. This increase is primarily due to (i) a significant increase in our subscribing members from 50.8 million as of December 31, 2017 to 60.1 million as of February 28, 2018; (ii) the growth in the scale of our business operations which reduced our market risk premium and decreased our discount rate from 16.5% on December 15, 2017 to 14.5% on February 28, 2018; and (iii) a decrease in the marketability discount from 4% on December 15, 2017 to 0% on February 28, 2018, as we publicly filed the registration statement on Form F-1 on February 27, 2018 and progressed further toward the completion of this offering.
Recently issued accounting pronouncements
Please see a more detailed discussion in Note 2 to our consolidated financial statements included elsewhere in this prospectus.