Douyu, a China-based video game livestreaming platform operator backed by internet group Tencent, has put its initial public offering in the US on hold, people familiar with the matter told Bloomberg yesterday.
The decision followed market jitters caused by President Donald Trump threatening to impose further tariffs on Chinese imports to the US. Douyu had initially planned to launch its roadshow yesterday with a target of $500m in proceeds, but will now wait until at least next week.
The company remains committed to completing an IPO as outlined in its regulatory filing, the company told Bloomberg, though it declined to reveal additional details. It hopes to list on the New York Stock Exchange.
Founded in 2014, Douyu has created a livestreaming platform for online games and eSports events. It has attracted more than 153 million monthly active users, but made a net loss of $126m on $531m in revenue last year.
The company has allocated proceeds from the proposed offering to bolstering its eSports content and expanding the range of content it broadcasts. The money will also support marketing activities and research and development activities for technologies such as big data.
The company has raised approximately $1.1bn in equity funding to date. Tencent, Nashan Capital and, reportedly, game developer Zeus Interactive contributed to a 2016 series B round sized at $73.7m according to the IPO filing, together with venture capital firm Sequoia Capital.
Tencent, Shenzhen Capital Group and China’s National SME Development Fund took part in a $166m series C round later the same year, and Tencent subsequently supplied approximately $631m in funding in March 2018.
Douyu’s largest shareholder is Tencent, with a 40.1% stake, while founder and chief executive Shaojie Chen owns 14.1%. Other sizeable stakes are held by Sequoia China (9.8%), Aodong Investments (8.9%), Douyu Employees (7%) and Phoenix Fuju (6%).
Morgan Stanley, JP Morgan Securities and Merrill Lynch have been appointed as underwriters for the IPO.
