Tencent-backed Douyu raises $775 million in US IPO
Jul 17, 2019
China’s biggest live-streaming platform Douyu announced on Wednesday it raised $775 million after pricing its US initial public offering (IPO) at the low end of the indicated range.
Why it’s important: The deal is so far the largest Chinese IPO in the US in 2019, eclipsing that of Luckin Coffee which raised $645 million, according to Reuters, citing market data.
- The Tencent-backed video game live-streaming platform in April filed its IPO application to Securities and Exchange Commission (SEC), following its largest Chinese competitor Huya, which listed in May last year.
- The company delayed its IPO roadshow in May amid the intensifying US-China trade war.
Details: The Wuhan-based company sold American depositary shares (ADS) at $11.5 each, compared with a previously stated target of $11.5 to $14.0, said the company on Wednesday.
- The company’s market cap reached $3.73 billion after the pricing. Shares in the company are set to begin trading on Nasdaq on Wednesday under the symbol “DOYU.”
- Its revenue doubled year on year in 2017 and nearly doubled again in 2018 when it reached RMB 3.65 billion (around $530 million), according to its IPO filing. Net losses declined around 22% year-year in 2017 and increased 43% year on year in 2018.