Streaming firm DouYu opens 4.17% lower in IPO

Wednesday, 17. July 2019 18:10

DouYu International Holdings Ltd. traded on Wednesday below its pricing level of $11.5 per American depositary share (ADS) after raising $775 million in an initial public offering on the Nasdaq. The streaming service operator based in Wuhan in Central China earlier targeted $11.5 to $14 apiece.

The company, which focuses on the gaming industry, listed after selling 67.39 million ADS, landing market capitalization at $4 billion. The value includes restricted shares owned by employees. The esports firm earned a mere 18 million yuan ($2.7 million) in the first quarter after three years in a row in the red, of which it lost 876.3 million yuan in 2018. It said the number of its average monthly users climbed 25% in the year through March to 159 million.

Two thirds of the flotation under the ticker DOYU were newly issued shares. DouYu said it would fund content, marketing activities and research and development. It counts Tencent Holdings Ltd. among its backers, controlling 37.2% after the listing excluding equity compensation for employees. The overallotment or greenshoe scheme given to investors and underwriters opened access to another 10.11 million shares, potentially lifting proceeds to as much as $891.2 million.

The company was 0.87% lower at $11.4 per ADS at 11:53 am ET. It moved between $11 and $11.54 today after opening 4.17% down at $11.02 per ADS.

Related Links: Tencent Holdings Ltd.
Breaking the News / IT