NASDAQ-listed Chinese online social entertainment firm YY Inc. has announced that its live gaming streaming platform Huya recently submitted a draft registration statement on a confidential basis to the U.S. Securities and Exchange Committee for a possible initial public offering in the U.S.
The news comes as its competitor, Tencent-backed Douyu, is reportedly planning to raise about US$300 to US$400 million in an IPO this year, possibly in Hong Kong.
YY said the aim of Huya’s IPO in the U.S. is to “attain its own group of investors to fund its long-term growth.” The firm did not disclose the size or the timetable of the IPO, but media reported Huya is seeking to raise at least US$200 million.
Founded in 2014, Huya operates a live streaming platform whose content includes video games, music, sports, entertainment and food. It has the third largest market penetration rate among various video streaming apps in China, following Douyu and YY, according to a survey published by Jiguang Data last December. It has more than 6 million daily active users.
It focuses on gaming streaming. Last year, it has bought the license to stream League of Legends Champions Korea, the primary competition for League of Legends sports in South Korea. It has has obtained licenses to stream Tencent’s Honor of Kings Pro League. In the first three months ended in the end of last December, Huya booked revenues of RMB741 million (US$117.4 million) and net income of RMB5 million (US$788,665), according to YY’s financial results.
Last May, Huya raised a US$75 million series A round led by China Ping An Insurance Overseas (Holdings) Ltd., and participated by Banyan Capital, Morningside Venture Capital, Engage Capital, David Li, chairman of YY, and Dong Rongjie, CEO at Huya.