China Streamer Makes U.S. Debut -- WSJ
July 18 2019 - 3:02AM
Dow Jones News
By Joanne Chiu and P.R. Venkat
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 18, 2019).
A Chinese video-streaming service raised $775 million through a
Nasdaq listing, capitalizing on the growing popularity of watching
others play games on the internet.
The initial public offering by DouYu International Holdings Ltd.
was the biggest this year by a Chinese company in the U.S., ahead
of the $645 million IPO of cafe chain Luckin Coffee Inc. DouYu
offers both desktop and mobile apps, and counts China's Huya Inc.
and Amazon.com Inc.'s Twitch among its peers.
DouYu, which is backed by Chinese internet heavyweight Tencent
Holdings Ltd., sold 67.39 million American depositary shares at
$11.50 apiece, at the bottom of an indicative price range of $11.50
to $14 a share, it said in a statement. Its shares in the U.S.
ended their first day of trading Wednesday flat at $11.50.
The IPO values the company at nearly $4 billion, including
restricted shares issued to employees under a share-based
compensation program.
China's esports industry is the world's largest by revenue and
number of gamers, according to iResearch.
Last year, some 683 million people, or roughly half the
country's population, played games on phones, computers or game
consoles. The market-research firm forecasts that number will reach
878 million -- or nearly a third of videogamers globally -- in
2023.
Rival Huya's shares have more than doubled since it listed on
the New York Stock Exchange in May 2018.
After three consecutive years of net losses, DouYu swung to a
net profit of $2.7 million in the three months ended March.
The number of average monthly active users accessing its
live-streaming platforms via personal computers and smartphones
stood at 159 million in the first quarter, up more than 25% from a
year earlier.
About two-thirds of the money raised came from selling new
shares, and the company plans to invest the proceeds in content,
marketing and research and development.
The rest of the stock came from existing shareholders selling
down their holdings, including Zhang Wenming, the company's
co-chief executive and co-founder.
Tencent will remain the single largest shareholder after the
IPO, with a 37.2% stake, DouYu's prospectus shows. This figure is
before any potential dilution caused by employee stock plans.
Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, BofA
Merrill Lynch and CMB International Capital Ltd. were joint
bookrunners.
Write to Joanne Chiu at joanne.chiu@wsj.com and P.R. Venkat at
venkat.pr@wsj.com
(END) Dow Jones Newswires
July 18, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Tencent (PK) (USOTC:TCEHY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tencent (PK) (USOTC:TCEHY)
Historical Stock Chart
From Apr 2023 to Apr 2024