By Joanne Chiu and P.R. Venkat
A Chinese video-streaming service raised $775 million through a Nasdaq listing, capitalizing on the growing popularity of watching others play games on the internet.
The initial public offering by DouYu International Holdings Ltd. /zigman2/quotes/213233721/composite DOYU +2.31% was the biggest this year by a Chinese company in the U.S., ahead of the $645 million IPO of cafe chain Luckin Coffee Inc. DouYu offers both desktop and mobile apps, and counts China’s Huya Inc. /zigman2/quotes/204095537/composite HUYA -5.87% and Amazon.com Inc.’s /zigman2/quotes/210331248/composite AMZN -1.68% Twitch among its peers.
DouYu, which is backed by Chinese internet heavyweight Tencent Holdings Ltd. /zigman2/quotes/204605823/delayed HK:700 0.00% , sold 67.39 million American depositary shares at $11.50 apiece, at the bottom of an indicative price range of $11.50 to $14 a share, it said in a statement. Its shares in the U.S. ended their first day of trading Wednesday flat at $11.50.
The IPO values the company at nearly $4 billion, including restricted shares issued to employees under a share-based compensation program.
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