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Huya shares fall premarket as it launches secondary offering of ADS

Ciara Linnane

Chinese streaming video-gaming company Huya Inc.'s shares tumbled 5% in premarket trade Monday, after it announced the launch of a secondary offering of American Depositary Shares. Huya said it is planning to offer 13.6 million ADS, while a selling shareholder is offering 4.8 million ADS. Proceeds will be used to invest in content and e-sports partners, to strengthen technologies, support overseas expansions and for general corporate purposes. The company went public in May of 2018 at $12 a share. The shares closed Friday at $25.99 and have gained 68% in the year to date, while the S&P 500 has gained 15%.