China’s Tudou Disappoints On First Day Of Trading
Tudou means potato in Mandarin Chinese, and online video website Tudou.com’s market debut today showed the company was more of a couch potato as it lazily watched its overvalued aspirations sink on the first day of trading.
Tudou’s stock plummeted 11.9% on its first day of trading to close at USD25.56. Meanwhile, its rival Youku.com, which made its market debut last December, rose nearly 13% today.
Tudou’s path to its intial public offering was long and hard. The company had planned to IPO last year, but marital legal problems for the company’s CEO Gary Wang and involving some of the company’s variable interest equity entities in China forced the company to postpone those exit plans.
Finally, a few weeks ago a Shanghai court remedied those problems, paving the way for the bankers and investors to reinitiate the IPO.