iQiyi Inc. (IQ) saw its shares slump 7.38% in Monday trading, amid a broader selloff in Chinese ADRs and a dilutive debt offering by the company.
The Chinese streaming giant closed a $350 million offering of 4.625% convertible senior notes due 2030, with net proceeds of around $344.8 million to be used for repaying and repurchasing existing debt securities and general corporate purposes. The company also repurchased around $300 million of its existing convertible senior notes.
The stock's decline came as part of a broader selloff in Chinese ADRs and ETFs, with the NASDAQ Golden Dragon China Index (CWEB) down 10% and the Direxion Daily FTSE China Bull 3X Shares ETF (YINN) falling 6%. Big names like Alibaba (BABA), Pinduoduo (PDD), and Bilibili (BILI) were also down around 7% in morning trading.
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