China game-streaming firm Huya launches $343 million follow-on offering – Reuters
What happened: Live-streaming platform Huya announced on Monday that it is planning to raise around $343 million in a new share offering of 13.6 million primary American Depositary Shares (ADSs). With the over-allotment option of 15%, the New York-listed company could raise as much as $394 million, based on Monday’s closing price of $25.23. Huya intends to use the net proceeds of the offering for investment in its content ecosystem and e-sports partners.
Why it’s important: Huya’s second share offering could bring the company twice the amount it raised with its 2018 IPO. The additional funding could help the company gain an upper hand in the competition with its largest rival, Douyu, for the attention of the approximately 266 million gamers in China. Huya is one of several Chinese content platforms that went public in 2018 to return to the capital market for more funds. The list includes Baidu-backed online video platform iQiyi, Tencent-backed video sharing website Bilibili and content aggregator Qutoutiao.