Baidu Plans To List Online Video Subsidiary IQIYI In U.S.

(RTTNews) - Baidu.com Inc. (BIDU) said that its online video subsidiary, iQIYI Inc., has submitted a draft registration statement to the U.S. Securities and Exchange Commission for a proposed initial public offering of iQiyi and listing of iQiyi's American depositary shares representing its ordinary shares on a major stock exchange in the U.S.

The Proposed IPO is expected to commence as capital markets conditions permit and is subject to iQiyi's public filing of the registration statement with the SEC in compliance with the Securities Act, and the SEC declaring such registration statement effective. The proposed number of American depositary shares to be offered and sold in the Proposed IPO has not yet been determined. Baidu expects to remain iQiyi's controlling shareholder after the completion of the Proposed IPO.

For the first quarter of 2018, Baidu expects net revenues to be between RMB19.86 billion or $3.05 billion and RMB20.97 billion or $3.22 billion, representing a 25% to 32% increase year over year. Excluding disposed businesses, such as mobile games and Baidu Deliveries, the guidance represents a 29% to 36% increase year over year.

Starting on January 1, 2018, Baidu adopted a new revenue accounting standard (ASC 606). The most significant impact will be the reclassification of value added tax from cost of revenues to net against revenues. If presented net of value added tax, revenues for fiscal 2017 would have been approximately 5.6% lower than currently presented. The above guidance reflects Baidu's new reporting requirement. If presented on the same basis as 2017, gross revenues are expected to be between RMB 21.05 billion or $3.24 billion and RMB22.23 billion or $3.42 billion, representing a 25% to 32% increase year over year.