Youku and Maoye raise fresh capital

Youku.com, China’s largest online video company, and a number of pre-IPO investors early Friday raised a combined $539 million from a fully marketed follow-on offering. When the deal was first flagged on May 5, Youku’s share price had risen more than four times since the December IPO, but that didn’t stop investors from buying the stock and the offering ended about three times covered.

The price did fall during the marketing, which may have helped attract buyers, although in relation to its overall gains the setback was minimal. In fact, the decline might have been bigger if it hadn’t been for the stunning US trading debut by social networking...