Tudou, a China-based video sharing website backed by a corporate venturing unit of International Data Group, had a difficult first day of trading yesterday as its shares fell nearly 12%.
Yesterday, the company raised $174m in its flotation on Nasdaq stock exchange. Investors bought six million American Depositary shares of Tudou at $29 each. However, by the end of yesterday’s trading the stock had fallen 11.86% to $25.56 per share, while the Nasdaq index fell 0.47% in the day’s trading.
The listing was in the middle of the company’s $28 to $30 per share range, which was set earlier this month.
Investment banks Credit Suisse, Deutsche Bank and Oppenheimer underwrote Tudou’s flotation.
The main shareholders of the company are IDG Technology Venture Investment (11.4%), a China unit of International Data Group, Singapore’s sovereign wealth fund Temasek (21.3%), First Easy Group (11.7%), as well as venture firms GGV Capital (12.1%), General Catalyst Group (8.2%), Jafco (8.2%), Capital Today (4.8%), Venrock Associates (4.7%) and Crescent Point Management (15.6%).
First Easy Group, the family trust of Gary Wei Wang (pictured), executive chairman of Tudou, was selling 1.7m of its shares as part of the flotation, the filing said.
Last year the company made a loss of RMB1.6m ($0.2m) on RMB79.4m revenues. The company has raised $135m in venture funding.