Videogame-watching IPO magnifies clash of clans

Wisdom Wealth Resources Investment Holding

11/05/2018 03:34

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Robyn Mak
    HONG KONG, May 11 (Reuters Breakingviews) - Huya is set to
list at a $2.6 bln valuation, or nearly eight times revenue. The
startup gives investors a shot at a market whose audiences for
"League of Legends" and other games exceed the NBA's. Backer
Tencent's stake in Chinese e-sports rival Douyu also offers a
useful hedge. 

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    CONTEXT NEWS
    - Huya, the game-streaming unit of video site YY, raised
$180 million in a New York initial public offering on May 10,
selling 15 million primary American depositary shares at $12
each, Reuters reported, citing an unnamed source. It values the
company at $2.6 billion, based on about 220 million ordinary
shares outstanding and options, according to the initial public
offering documents. The shares are due to start trading on May
11.
    - Credit Suisse, Goldman Sachs and UBS were joint
bookrunners.
    - Chinese gaming group Tencent invested $462 million in Huya
in March and has an option to increase its voting stake of about
40 percent to 50.1 percent before March 2021, according to
Huya’s prospectus.
    - For previous columns by the author, Reuters customers can
click on  MAK/   
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IFR: Chinese gaming firm Huya prices IPO in New York at $12 per
share – source     urn:newsml:reuters.com:*:nL8N1SH8ZR
Huya prospectus    https://www.sec.gov/Archives/edgar/data/1728190/000119312518157336/d494918df1a.htm#toc
BREAKINGVIEWS-Tencent wisely prepares for post-“Kings” era   
 urn:newsml:reuters.com:*:nL3N1R316U
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Jeffrey Goldfarb and Katrina Hamlin)
 ((robyn.mak@thomsonreuters.com; Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))