Why IQIYI (IQ) Shares Are Falling Today - iQIYI (NASDAQ:IQ)

IQIYI, Inc IQ priced 76.5 million American Depositary Shares at $5.90 per ADS under a secondary public offering.
The offer price implies an 11.8% discount to IQIYI's January 13 closing price of $6.69.
The expected offering proceeds are $442.3 million. The underwriters have 30 days to purchase up to 11.5 million additional ADSs.
The online entertainment video services provider plans to use the offering proceeds for working capital purposes, including serving its existing debt obligations.
IQIYI held RMB 5.0 billion ($709.5 million) in cash and equivalents as of September 30. IQIYI held RMB 6.4 billion in convertible senior notes.
Price Action: IQ shares traded lower by 13.68% at $5.78 on the last check Tuesday.
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IQIYI Raises $442M Via Secondary Equity Offering At 12% Discount