By Chris Wack

IQIYI Inc. shares were down 15% to $19 Wednesday after the company said it began a registered underwritten public offering of its convertible senior notes due 2026 and a registered underwritten public offering of American depositary shares.

The company said it is proposing to offer $800 million aggregate of the notes. It plans to grant the underwriters in the notes offering a 30-day option to purchase up to an additional $100 million aggregate of the notes.

The notes will be senior, unsecured obligations, and will mature Dec. 15, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date.

Concurrently with the offering of the notes, iQIYI said it is offering an aggregate of 40 million ADSs. The company intends to grant the underwriters a 30-day option to purchase up 6 million additional ADSs.

IQIYI said it intends to use the net proceeds from the offering to expand and enhance its content offerings, strengthen its technologies and for working capital and other general corporate purposes.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

12-16-20 1028ET