China game-streaming agency Huya launches $343 million follow-on providing | Information

[ad_1]

By Julia Fioretti

HONG KONG (Reuters) – Chinese language game-streaming firm Huya Inc, backed by Tencent Holdings Ltd, has launched a follow-on share providing of about $343 million to lift funds for funding in its content material and e-sports companions.

Huya, which went public final yr in New York, is a part of a rising development of Chinese language tech corporations returning to capital markets for money quickly after their preliminary public providing (IPO).

Huya is promoting 13.6 million main shares, the game-streaming agency firm mentioned in a inventory change submitting. On the similar time, social media platform YY Inc is promoting 4.eight million of Huya shares, the submitting confirmed.

Based mostly on its closing worth of $25.23 on Monday, the mixed sale may increase as a lot as $464 million.

There’s an over-allotment – or greenshoe choice – of as much as 15 % for Huya’s share sale, which means the agency may increase as a lot as $394 million if exercised. There’s likewise a 15 % over-allotment for YY’s stake sale.

Huya is China’s largest live-streaming sport platform, in response to the providing prospectus, competing with Douyu which plans to go public in New York this yr.

China boasts the world’s largest gamer base in e-sports with about 266 million players in 2018, the prospectus confirmed.

Huya’s shares have risen about 65 % for the reason that agency’s IPO in Might, by which it raised $180 million.

Different corporations from the 2018 IPO cohort returning for extra funds embody electrical car maker NIO Inc, video streaming firm iQIYI Inc, e-commerce agency Pinduoduo Inc and video platform Bilibili Inc.

Bankers are pinning their hopes for 2019 on extra capital elevating by way of follow-on choices or convertible bonds because the crop of Chinese language corporations seeking to go public thins out after a blockbuster 2018 when it comes to IPOs.

Lots of the corporations that went public in 2018 raised much less cash than that they had hoped for – partly as a consequence of world market jitters and partly as a result of buyers pushed again towards lofty valuations – which can drive follow-on capital elevating.

Huya will worth its follow-on providing after New York markets shut on Tuesday.

Citigroup, Credit score Suisse, Goldman Sachs and Jefferies are joint bookrunners for the deal.

(Reporting by Julia Fioretti; Enhancing by Christopher Cushing)



[ad_2]

Supply hyperlink

اترك تعليقاً

لن يتم نشر عنوان بريدك الإلكتروني. الحقول الإلزامية مشار إليها بـ *