Gong Yu, founder and chief executive officer of iQiyi.com. (Photo by Victor J. Blue/Bloomberg)

 

Skadden, Arps, Slate, Meagher & Flom has advised Chinese video streaming site iQiyi Inc. on an initial public offering on Nasdaq that will raise $2.25 billion.

The deal is the largest U.S. IPO by an Asian company so far in 2018. In January, Brazilian fintech company, Pagseguro Digital Ltd., raised $2.6 billion in its listing on the New York Stock Exchange. iQiyi starts trading on Thursday.

Backed by Chinese internet search engine giant Baidu Inc., iQiyi provides Netflix-like video streaming services to 420 million users every month, according to a prospectus. The company will use the proceeds to promote its brand, recruit more talent and for potential acquisitions.

The deal generated nearly $2.22 million in legal fees and expenses, according to filings made with the U.S. Securities and Exchange Commission. In addition to Skadden, law firms working on the listing are Davis Polk & Wardwell; Walkers; Jingtian & Gongcheng; and Han Kun Law Offices.

Skadden Hong Kong partners Julie Gao and Will Cai led the team advising Beijing-based iQiyi on the deal. Jingtian & Gongcheng Beijing partners Gao Xiang, Hu Zhengzheng, Tian Mingzi and Zhou Lu acted for the issuer on Chinese law matters.

Davis Polk Beijing partner Li He and Hong Kong partner James Lin represented underwriters Goldman Sachs, Credit Suisse Securities, Merrill Lynch, Pierce, Fenner & Smith Inc., China Renaissance Securities Ltd., Citigroup Global Markets Inc. and UBS Securities. Han Kun Law Offices Beijing partners Charles Li and Tracy Zhou were Chinese counsel to the banks.

The company was incorporated under the laws of the Cayman Islands, and Walkers advised on matters governed by Cayman Islands law.

In addition to iQiyi, Skadden also advised similar Chinese video sharing site Bilibili Inc. on a $483 million listing on the New York Stock Exchange. Hong Kong-based Julie Gao teamed up with Shanghai partner Haiping Li acting for the Shanghai-based streaming platform targeting China’s younger generation. Commerce & Finance Law Offices served as Chinese counsel.

Latham & Watkins Hong Kong partners Allen Wang and Cathy Yeung represented Morgan Stanley & Co. International plc., Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities as underwriters to Bilibili’s listing. Tian Yuan Law Firm advised the banks on Chinese law.