(Bloomberg) -- DouYu International Holdings Ltd., a Chinese video-game live-streaming platform, filed for an U.S. IPO as it seeks to win market share among the country’s younger generation who love to splurge on virtual gifts for their favorite streamers.
The initial filing came almost a year after its biggest competitor, Huya Inc., listed in the U.S. last May. The duo, which operate like Twitch, are China’s top two video-game live-streaming platforms. Both companies are backed by Tencent Holdings Ltd., which plowed more than $1 billion into DouYu and Huya in the past year.
DouYu seeks to list its American depository shares on NYSE under the ticker "DOYU." The company plans to use proceeds to invest in eSports content, R&D, and marketing. Morgan Stanley, J.P. Morgan and BofA Merrill Lynch are acting as underwriters.
The platform reported 2018 net revenue of $531.5 million, with a net loss $127.4 million. Its revenue growth is heavily dependent on paying users, which grew to 6 million in the first quarter this year, up 67 percent from a year earlier.
DouYu said in the filing that its relationship with Tencent does not restrict the Chinese giant from collaborating with others.
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