Video game streaming company ready for IPO
The IPO had been delayed due to market uncertainty a few months ago
This past May, DouYu International Holdings was ready to go live with an initial public offering (IPO) in the US. However, the Chinese video game live-streaming company decided to put its plans on hold due to market concerns, which were fueled by the ongoing trade war between the US and China. As the two countries seem to be ready to try and find common ground, DouYu has announced that it is ready to head back to the markets and expects its IPO to attract as much as $944 million.
DouYu is one of the top video game live-streaming platforms in China. The initial IPO had been filed in April and was expected to follow that of rival Huya, which launched its offering almost a year earlier. However, when May rolled around, the company decided to hold off to see what happened with the trade war.
Investors will be able to purchase a total of 22.5 million shares. The IPO will be led by JPMorgan Chase & Co, Morgan Stanley, CMB International Capital and Bank of America. Currently, the shares are expected to be offered on the NASDAQ’s Global Select Market with a ticker symbol of DOYU.
DouYu has exclusivity for 29 major tournaments in China, including events in Player Unknown’s Battlegrounds, Dota 2 and League of Legends. Its average total monthly active users for the first quarter of this year was 159.2 million – 25.7% higher year-on-year – and continues to expand. The IPO is expected to be the largest of the year in the US by any Chinese company.