China-based animation streaming platform Bilibili filed on Friday to raise up to $400m in a US initial public offering that will give internet group Tencent an exit.
Founded in 2009 as an online community focused on anime, comics and gaming, Bilibili runs an online video streaming platform focused on Japanese animation, or anime, as well as mobile gaming and livestreaming activities.
Bilibili had an average of almost 72 million monthly active users as of the end of 2017 and made a $28.2m net loss in 2017 from $379m in revenue.
The IPO proceeds will be invested in marketing and research and development activities as Bilibili looks to strengthen its artificial intelligence, big data and cloud technology capabilities.
The filing indicates that the company raised approximately $44m in a 2015 series B round led by venture capital firm Qiming Venture Partners and backed by mobile game developer FingerFun, IDG-Accel China, China Media Capital (CMC) and Huaxing Capital Partners.
Bilibili added almost $162m in a series C round later that year that included a $45m investment by internet group Tencent through a vehicle called OPH B, as well as Qiming, CMC, Tiger Global Management’s Internet Fund III vehicle, which invested $70m to lead the round, H Capital, Windforce and Lighthouse Venture International.
HaiTong XuYu, the international branch of investment bank HaiTong, joined a range of investment vehicles for a $194m series C-1 round the following year. One of those, Cheerford, represented Legend Capital, the VC firm formed by conglomerate Legend Holdings.
Another vehicle, Green Bridge Group, added $5m in May 2016 while and Cheerford invested $7.1m in May 2017, before Tencent, Cheerford and CMC provided about $100m in series D funding later the same month.
Tencent holds a 5.2% share of the company according to the filing, while Legend Capital owns 5.9%. The other notable investors are chairman and early investor Rui Chen (21.5%), investment vehicles Kami Sama (13.1%) and Loyal Valley Capital (9%), CMC (12.8%) and IDG-Accel China (7.6%).
Morgan Stanley International, Merrill Lynch, Pierce, Fenner & Smith and JP Morgan Securities have been appointed joint bookrunners of the offering.