Tudou to IPO on Nasdaq
Tencent Tech, 11/10/10
Chinese video site Tudou has submitted its prospectus to IPO on the Nasdaq Global market under the ticker symbol TUDO to the U.S. Securities and Exchange Commission (SEC). The IPO, which is expected to raise USD 120 mln, is being underwritten by Credit Suisse and Deutsche Bank.
Tudou previously raised USD 135 mln in private equity funding from Crescent Peak, IDG China, and GGV II Delaware.
According to the prospectus, Tudou's directors and executive officers hold 38.34 mln shares, constituting 41.3% of total shares, with CEO Gary Wang holding 12.35 mln shares or a 13.4% stake. Crescent Peak holds 14.22 mln shares, a 15.6% stake; First Easy Group holds approximately 11.3 mln shares (12.4%); IDG China holds 10.37 mln shares (11.4%); Sennett Investments holds 19.35 mln shares (21.3%); GGV II Delaware holds 11.03 mln shares (12.1%); General Catalyst holds 7.48 mln shares (8.2%); Capital Today holds 4.35 mln shares (4.8%); and Venrock Associates holds 4.26 mln (4.7%).
For the first nine months of 2010, Tudou recorded net revenue of RMB 224.8 mln (USD 33.6 mln), up 230.1% YoY, and a net loss of RMB 83.7 mln (USD 12.5 mln), compared to a net loss of RMB 100.45 mln in the same period last year.
Tudou has yet to announce an initial price range or timetable for the IPO. Tudou plans to use funds raised for content procurement and in-house developed content production, expansion of Internet bandwidth capacity, enhancement of its technology platform, and provision of working capital.
Editor's Note: The prospectus also states that Tudou provided online advertising services to 63, 170, 320 and 420 advertising customers in 2007, 2008, 2009 and the nine months ended September 30, 2010, respectively. Unilever, Coca-Cola, Pepsi, Volkswagen and P&G were the top five brands and contributed 13.5% of net revenues for the first nine months of 2010. Chinese domestic brands such as Master Kong and China Mobile (NYSE: CHL; 0941.HK), were Tudou's top two Chinese domestic brand customers and collectively accounted for approximately 4.7% of net revenues for the nine months ended September 30, 2010.
Tudou's top five advertising agency partners - Hylink, Allyes, AdChina, JWT and Wwwins Consulting, were collectively involved in 25.8% of net revenues for the nine months ended September 30, 2010.
According to a third-party research firm cited by Tudou, the company provided advertising services for 420 advertising brands and had 103,221 cumulative advertisement display days for the seven months ended July 31, 2010.
To see Tudou's complete IPO prospectus, please click here.
Keywords: Crescent Peak First Easy Group Sennett Gary Wang China Mobile Deutsche Bank Internet IPO Nasdaq loss revenue online advertising Tudou Allyes Capital Today Credit Suisse General Catalyst Venrock Associates AdChina profit online video CHL 0941.HK IDGVC wwwins Isobar
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