YY, a China-based social communications platform backed by media group Disney’s corporate venturing unit, plans to sell 7.8 million shares at between $10.50 and $12.50 each in its Nasdaq stock exchange flotation.
YY would have an initial market capitalisation of $2.9bn at $11.50 per share.
Disney’s Steamboat Ventures owns 12.2% of YY following a $5m series B round in 2008, with family office Morningside Ventures 12.6%, venture capital firm GGV 8.8% and hedge fund Tiger Global 8.5%, according to a regulatory filing.
Investment banks Morgan Stanley, Deutsche Bank and Citigroup are co-lead underwriters to YY’s initial public offering.
YY reports about $3.2m in net income on $51m in revenue for the first six months of the calendar year.