China’s DouYu raises $775m in US IPO

Bloomberg

Chinese video-game live-streaming platform DouYu International Holdings Ltd and its shareholders raised $775 million after pricing its US initial public offering at the bottom of its marketed range.
The company, which delayed its IPO amid market jitters in May, sold 44.9 million American depository shares for $11.50 each, according to a statement. Its existing investors sold 22.5 million shares of the base offering, which had been marketed for $11.50 to $14.00 apiece.
At bottom-end pricing, the company is valued in the listing at about $3.7 billion, based on the number of shares listed as outstanding in its filings with the US Securities and Exchange Commission. It is the biggest cross-border listing from China since Tencent Music Entertainment Group raised $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. The Wuhan-based company had filed for its IPO on April 22, almost a year after its biggest rival, Huya, went public in the US.
DouYu, backed by Tencent Holdings Ltd, had net income of $2.7 million on revenue of
$222 million in the first quarter, according to its filings.
That compared with a loss of about $23 million on revenue of $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.