Apr 23, 2019 (China Knowledge) - Chinese video-game streaming platform DouYu International has filed for a US IPO, aiming to raise up to USD 500 million.
DouYu’s application comes a year after rivals Huya Inc went public in the US in May last year. The two companies are among China’s most popular games live-streaming platform.
The company which was founded in 2014 raked in USD 545 million in sales last year with a net loss of USD 127 million. According to DouYu, paying users who make up majority of the company’s revenue rose to 6 million during the first quarter of this year, increasing 67% from a year earlier.
DouYu plans to use the funds raised to invest in eSports content, research and development as well as marketing to win a larger market share among younger users who are increasingly willing to spend on virtual gifts for their favorite streamer.
DouYu which is also backed by gaming giants Tencent, will continue working with the latter to develop the video game streaming industry and achieve strategic collaborations between the gaming and live-streaming industry.
Morgan Stanley, JP Morgan and Bank of America Merrill Lynch are underwriters for the IPO.
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