NEW YORK, Sept. 14 (Xinhua) — Chinese mobile content aggregator Qutoutiao Inc. started trading on Nasdaq Stock Market on Friday.
The company, trading under the ticker symbol of “QTT”, announced its initial public offering (IPO) of 12,000,000 American depositary shares (ADSs) at a price to the public of 7.0 U.S. dollars per ADS for a total offering size of approximately 84 million dollars, assuming the underwriters do not exercise their option to purchase additional ADSs.
Each four ADSs represent one Class A ordinary share of the Company.
Qutoutiao started trading at 9.10 U.S. dollars per share on Friday, climbing 110 percent from its pricing, and was traded at 14.70 dollars apiece around midday.
Launched in June 2016, the company’s flagship mobile application, Qutoutiao, meaning “fun headlines” in Chinese, aggregates articles and short videos from professional media and freelancers and presents customized feeds to users.
It ranked second among mobile content aggregators in China in terms of monthly active users (MAUs) and average daily active users (DAUs) in July 2018, according to market analysis.
The company mainly targeted users from small cities in China due to enormous business opportunities there, according to its prospectus.
Qutoutiao reached MAUs of approximately 62.0 million, average DAUs of approximately 21.1 million and average daily time spent per DAU of approximately 55.4 minutes in August 2018, according to the company.
The fund raised will be used for expanding and enhancing its content offerings, product development and technology infrastructure, as well as marketing and promotion of its products and branding, said its prospectus.
Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. as well as China Merchants Securities (HK) Co., Ltd. and UBS Securities LLC are acting as joint bookrunners for the offering.
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