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424B4
IQIYI, INC. filed this Form 424B4 on 03/29/2018
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Table of Contents

Use of proceeds

We expect that we will receive net proceeds of approximately $2,183 million from this offering, or approximately $2,520 million if the underwriters exercise their option to purchase additional ADSs from us in full, after deducting underwriting discounts and commissions and estimated offering expenses payable by us.

 

  We plan to use 50% of the net proceeds we receive from this offering to expand and enhance our content offerings, 10% to strengthen our technologies, and the balance for working capital and other general corporate purposes. See “Use of Proceeds” for more information.

 

Nasdaq symbol

IQ

 

Depositary

JPMorgan Chase Bank, N.A.

 

Lock-up

We, our directors, executive officers and our existing shareholders have agreed with the underwriters not to sell, transfer or dispose of any ADSs, ordinary shares or similar securities for a period of 180 days after the date of this prospectus, subject to certain exceptions. See “Shares Eligible for Future Sale” and “Underwriting.”

 

Risk factors

See “Risk Factors” and other information included in this prospectus for a discussion of risks you should carefully consider before investing in the ADSs.

The number of ordinary shares that will be outstanding immediately after this offering:

 

    assumes (i) re-designation or conversion of all outstanding ordinary shares and preferred shares (other than ordinary and preferred shares held by Baidu or its affiliates) into 1,239,341,283 Class A ordinary shares and (ii) re-designation or conversion of all outstanding ordinary shares and preferred shares held by Baidu or its affiliates into 2,839,530,705 Class B ordinary shares, in each case immediately upon the completion of this offering;

 

    assumes no exercise of the underwriters’ option to purchase additional ADSs representing Class A ordinary shares;

 

    excludes the 36,860,691 Class B ordinary shares that we expect to issue to Baidu Holdings no later than May 31, 2018, pursuant to a share purchase agreement we entered into with Baidu Holdings on February 12, 2018;

 

    excludes 398,363,578 Class A ordinary shares issuable upon the exercise of options outstanding as of the date of this prospectus, at a weighted average exercise price of $0.4674 per share;

 

    excludes 720,000 restricted share units outstanding as of the date of this prospectus; and

 

    excludes 183,865,885 Class A ordinary shares reserved for future issuances under our equity incentive plans.


 

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