China’s largest game live streaming platform Huya is planning a public offering of American Depository Shares to raise up to USD 550 million, a prospectus it filed with the United States Securities and Exchange Commission shows.
The price of the offering and the amount of shares to be sold have yet to be decided.
Approximately 30% to 40% of the proceeds will be used for investments in Huya’s content ecosystem and e-sports partners to continue expanding content genres and improving content quality, said the company.
As of December 31, 2018, Huya’s live streaming content covered over 3,300 games, including mobile, PC and console games, said the company in the prospectus.
It added that 10% to 15% of the proceeds will be reserved for future overseas expansion opportunities and potential strategic investments and merger and acquisition opportunities.
Huya, with live streaming site YY as its largest shareholder and Tencent as its second-largest shareholder, made a net loss of RMB 1.9 billion (USD 281 million) in 2018. That was nearly 23 times the net loss of RMB 80.9 million in 2017.
The company raised USD 180 million in its initial public offering in May 2018.
Huya closed at USD 27.04 Wednesday, 2.38% lower compared to the closing price the previous day.
Editor: Nadine Freischlad
Contact the writer at jingli@kr-asia.com
