Tencent-backed live-streaming game platform Douyu plans IPO in Hong Kong next quarter
Besides live-streaming games, the Wuhan-based company broadcasts a range of video content, including outdoor thrills and cookery lessons
Tencent-backed live-streaming games platform Wuhan Douyu Network Technology Co is planning an initial public offering in Hong Kong to raise as much as US$700 million, according to people familiar with the matter.
The company is aiming for a listing in the third quarter this year, said the people, asking not to be identified because the matter is private. Douyu declined to comment on its listing plans.
Founded in 2014, Douyu has grown into a unicorn – a term for start-ups that have a valuation over US$1 billion – and was valued at over US$2.4 billion in its latest round of fundraising in March, when Tencent invested US$630 million.
Asia's fastest-growing tech firm live-streams video games, cooking lessons
Besides live-streaming games, the Wuhan-based company broadcasts a range of video content, including outdoor thrills and cookery lessons. Douyu topped a December list of the fastest-growing technology companies in Asia-Pacific, with a surge in revenue of over 700 times over the past three years, according to global accounting and consultancy firm Deloitte.
By most accounts China is home to the biggest active user base of live streaming, with industry revenue expected to grow from last year’s US$5.5 billion to US$16.5 billion by 2022, according to figures included in a filing by Huya, another Chinese live-streaming game platform listed on the New York Stock Exchange.
Chinese game live-streaming site Huya seeks US listing
Total revenue from China’s live-streaming games market is expected to see “significant growth” and reach US$4.9 billion by 2022, according to the Huya filing. China also has the world’s largest games market in terms of revenue and gamers, according to consultancy Frost & Sullivan Research. The country had 646 million gamers as of last year and this is expected to grow to 917 million by 2022.
Huya, a subsidiary of the live-streaming platform YY, started trading in New York in mid-May this year, with its stock rising from US$12 to US$29.50, as of the close of trading on Wednesday.
