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DouYu International IPO: What You Need To Know

Shanthi Rexaline

DouYu International (NASDAQ: DOYU) has filed for offering 67.387 million American Depository Shares, representing 6.739 million ordinary shares in an IPO, to be priced between $11.50 and $14, according to the amended registration statement filed with the SEC.

Of the 67.387 million ADSs, 44.925 million ADSs are to be offered by the company and the remaining 22.462 million ADSs are being sold by selling shareholders.

The company has applied for listing its ADSs on the Nasdaq under the ticker symbol DOYU.

Morgan Stanley, JPMorgan, Bank of America Merrill Lynch and CMBI are the underwriters for the offering.

This game-centric live-streaming company had to delay its IPO, originally scheduled for May, due to the escalation in the Sino-U.S. trade tensions.

The Company

DouYu is a Chinese video-game live-streaming platform and a pioneer in esports value chain. The company operates its platform on PC and mobile apps, providing an interactive and immersive gaming experience.

Citing iResearch, the company said it ranks first in the size of the user base, as measured by the total monthly active users, or MAUs, as well as first in terms of the level of user engagement.

DouYu is operating in the lucrative Chinese market, which had about 4.9 times the MAUs of the U.S. market in 2018. The company also stands to benefit from the proliferation of the esports industry in China.

As of March 31, 2019, the company's platform had 6.5 million registered streamers, 280.9 million registered users, 159.2 million MAUs. Its total esports MAUs were about 125.3 million at the end of the first quarter.

The Finances

DouYu reported net revenues of $544.52 million for the fiscal year 2018, up about 94% year-over-year. The net loss for 2018 widened to $131.56 million.

For the three months ended March 2019, it reported revenues of $221.9 million and a net income of $2.7 million.

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