Chinese video streaming platform DouYu raises US$775m in US float

Business | 17 Jul 2019 12:24 pm

Chinese video-game live-streaming platform DouYu International Holdings and its shareholders raised US$775 million after pricing its U.S. initial public offering at the bottom of its marketed range, Bloomberg reports.

The company, which delayed its IPO amid market jitters in May, sold 44.9 million American depository shares for US$11.50 each, according to a statement. Its existing investors sold 22.5 million shares of the base offering, which had been marketed for US$11.50 to US$14.00 apiece.

At bottom-end pricing, the company is valued in the listing at about US$3.7 billion, based on the number of shares listed as outstanding in its filings with the U.S. Securities and Exchange Commission. It is the biggest cross-border listing from China since Tencent Music Entertainment Group raised US$1.07 billion in December.

DouYu, one of China’s top two video-game live-streaming platforms, initially planned to start its IPO roadshow in May but postponed it following President Donald Trump’s threat to boost tariffs on China, people familiar with the matter said at the time.

The Wuhan-based company had filed for its IPO on April 22, almost a year after its biggest competitor, Huya Inc., went public in the U.S. DouYu, backed by Tencent Holdings, had net income of US$2.7 million on revenue of US$222 million in the first quarter, according to its filings.

That compared with a loss of about US$23 million on revenue of US$97 million during the same period last year.

Existing investors that are selling shares in the IPO included Aodong Investments and Co-Chief Executive Officer and co-founder Zhang Wenming, according to the company’s filings.

Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and CMB International Capital Ltd. led the offering. The shares are expected to start trading Wednesday on the Nasdaq Global Select Market under the symbol "DOYU".

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