Youku Announces Its Intention to File a Registration Statement with the Securities and Exchange Commission Relating to an Offering of Its ADSs by Youku and Certain of its Pre-IPO Investors
Thursday , May 05, 2011 16:59ET
BEIJING, May 5, 2011 /PRNewswire-Asia/ -- Youku.com Inc. (NYSE: YOKU) today announced it intends to file a registration statement with the United States Securities and Exchange Commission (the "SEC") on or about May 5, 2011 (U.S. Eastern Time) relating to a proposed offering of its American depositary shares ("ADSs") by Youku and certain of its pre-IPO investors. The amount and timing of the proposed offering are subject to market conditions and other factors.
The majority of the offering will likely be primary shares to be issued by Youku with the rest being secondary shares to be sold by certain pre-IPO investors. The purpose of the offering is to provide additional capital to Youku for investments in technology, infrastructure and product development efforts, video content acquisition, expansion of sales and marketing efforts, and general corporate purposes, including working capital needs and potential strategic acquisitions or investments. The offering will also provide for greater liquidity of the ADSs in the market by increasing the public float as well as providing an opportunity for certain pre-IPO investors to obtain liquidity on part of their holdings in Youku in an organized fashion. Youku will not receive any proceeds from the sale of the ADSs by the selling shareholders. The number of ADSs to be issued and sold by Youku and the selling shareholders will be determined at an appropriate later date and will be reflected in an amendment to the registration statement to be filed with the SEC. Each ADS represents 18 of Youku's Class A ordinary shares.
A registration statement relating to these securities has not been filed with the SEC and, if filed, will not immediately become effective. The ADSs may not be sold, nor may offers to buy be accepted, prior to the time the registration statement relating to the proposed offering becomes effective.
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the securities described herein, nor shall there be any offer, solicitation or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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