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The Wall Street Journal

July 17, 2019, 7:28 p.m. EDT

Videogame-streamer DouYu raises $775 million in largest U.S. IPO by a Chinese company this year

Shares end their first trading day flat

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. (NAS:DOYU)   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. (NYS:HUYA)   and Amazon.com Inc.’s (NAS:AMZN)   Twitch among its peers.

DouYu, which is backed by Chinese internet heavyweight Tencent Holdings Ltd. (HKG:HK:700)   , 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.

An expanded version of this report appears on WSJ.com.

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