iQIYI has raised more than $2.2bn through its IPO giving the Chinese video platform a market value of $12.7bn.
The Baidu-owned platform, which listed on the Nasdaq this week, saw stocks open at $18.20 before dropping down to $17.80.
The company, which is often described as China’s Netflix, plans to use the investment to enhance its content library and technology platform.
Baidu chairman and chief executive Robin Li praised the company’s performance in an address at the exchange and said the IPO was the second largest, after Alibaba’s offering a few years ago.
“Eight years ago, when we got started, we were not the first one, we were not the largest one, but we gradually worked our way up, and caught up and surpassed everyone. It has been not an easy journey, but finally, we are public. We surpassed everyone. That’s because we have a very strong team.”
“13 years ago, I was here at NASDAQ too for the Baidu IPO – we raised $100 million. Today, iQIYI raised more than $2 billion. And today, Baidu stock is worth probably 85 times more than the IPO price, and I am hoping iQIYI will be worth many times more than the current iQIYI price,” said Li.