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DouYu revives plan and announces pricing of USD 1bn+ IPO
Posted on Tuesday, 09 July 2019 13:45
DouYu International Holdings, the US holding company of Chinese video-game live-streaming platform DouYu, has priced its previously announced initial public offering (IPO) after delaying plans to go public in May due to market uncertainty.

The business filed confidentially in January and issued preliminary documents with the US Securities and Exchange Commission in April, setting a placeholder of USD 500.00 million for the sale of its American depositary shares (ADS).

DouYu confirmed the terms of the flotation, whereby it will offer 44.92 million ADSs, with selling shareholders offering an additional 22.46 million ADSs, as well as an overallotment option of 10.11 million ADSs to underwriters.

This brings the total amount of stock being sold in the IPO to 77.49 million at a price of between USD 11.50 and USD 14.00 apiece, representing proceeds in a range of USD 891.14 million and USD 1.08 billion.

DouYu is listing its ADSs on Nasdaq under the symbol DOYU and has hired Morgan Stanley, JPMorgan, Bank of America Merrill Lynch and CMBI to underwrite the stock market flotation.

The company decided to postpone plans in May after President Donald Trump threatened to boost tariffs on China, people familiar with the situation told Bloomberg at the time.

DouYu is billed as the largest game-centric live streaming platform in the country, which, according to the prospectus, is the world’s largest market, with 4.9x the monthly average users (MAU) of the US segment in 2018.

On 31st March 2019, the group had 280.90 million registered users with 110.10 million MAUs on its PC platform and 49.10 million on its mobile application.

DouYu plans to use the proceeds from the IPO to provide premium eSports content and further expand its genres, while strengthening technologies and big data analytics capabilities.

The company generated revenue of CNY 1.49 billion (USD 216.38 million) in the three months ended 31st March 2019, up significantly from CNY 666.50 million in the corresponding period of 2018.

Net income for the same timeframe totalled CNY 18.20 million, compared to a loss of CNY 162.30 million in Q1 2018.

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