The share price of Chinese content app Qutoutiao more than doubled in the day following its initial public offering in New York on Friday, Caixin reports. The company had previously slashed its IPO price over fears that US investors had gone cold on Chinese tech stocks, but these worries appeared to have been unfounded.
The company raised $84 million by selling 12 million American depositary shares, a much lower amount than the $300 million it was originally targeting. The company offered its stock at $7 a share, at the bottom of its price range, but the shares soared to $15.97 by the end of Friday.
Qutoutiao follows closely the business model of Chinese unicorn startup Bytedance, whose content app Jinri Toutiao uses artificial intelligence algorithms to curate content and suggest videos and articles that users are likely to find interesting.
Qutoutiao now has an estimated 17.1 million daily users, mostly based in China’s smaller cities, making it China’s third most popular content app after Tencent News and Jinri Toutiao.
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