Huya, the China-based livestreaming platform spun off by social media company YY, yesterday filed to raise up to $200m in an initial public offering in the US.
Formed by YY in 2014, Huya runs an online platform with almost 87 million monthly active users (MAUs) where gamers can livestream their gameplay.
The company, which has partnerships in place with game developers and publishers as well as eSports promoters, claims to not only have the most MAUs of any game livestreaming platform in China but also the most active broadcasters.
The IPO proceeds will be used to expand Huya’s range of services along with its sales and marketing, to grow its content and eSports partnership networks, and to extend research and development.
Huya’s first external funding came in the form of a $75m series A round led by a subsidiary of insurance firm Ping An and backed by Banyan Partners, Morningside Ventures, Engage Capital, Huya CEO Rongjie Dong and YY chairman and CEO David Xueling Li in May 2017.
Internet group Tencent invested $462m in Huya last month, and owns a 39.8% stake through a vehicle known as Linen Investment. YY retains a 55.5% share while Huya’s executives own a further 3.5%, indicating that Tencent likely bought shares from series A investors as part of the March deal.
Credit Suisse Securities (USA), Goldman Sachs (Asia) and UBS Securities have been selected as underwriters for the IPO, which will take place on the New York Stock Exchange.