Company: HUYA, Inc.
Description: They are the No.1 game live streaming platform in China.
Trade Date: 5/11
Shares: 15 million ADS
Price Range: $10.00-$12.00
Underwriter(s): Credit Suisse, Goldman Sachs (Asia), UBS Investment Bank
Co-Manager(s): Needham & Co.
Terms Added: 5-1-18
Link to Prospectus
Link to Retail Roadshow
Business: They have the largest and most active game live streaming community in terms of average MAUs, and average daily time spent on mobile app per mobile active user in the fourth quarter of 2016 and 2017, and the largest number of active broadcasters in 2016 and 2017, according to the Frost & Sullivan Report.
As the pioneer and market leader, they are well positioned to expand further in the rapidly growing game live streaming market in China.
They cooperate with e-sports event organizers, as well as major game developers and publishers, and have developed e-sports live streaming as the most popular content genre on their platform. As of December 31, 2016 and 2017, their live streaming content covered over 2,100 and 2,600 different games, respectively, including mobile, PC and console games.
Building on their success in game live streaming, they have also extended their content to other entertainment genres, such as talent shows, anime and outdoor activities.
Financials: They have experienced rapid growth since their inception. Their revenues increased from RMB796.9 million in 2016 to RMB2,184.8 million (US$335.8 million) in 2017.
They had net losses of RMB625.6 million and RMB81.0 million (US$12.4 million) in 2016 and 2017, respectively.
Spin-Off: Following the completion of this offering, they will be a “controlled company” as defined under the Corporate Governance Rules of the NYSE because YY Inc., or YY, will hold 56.4% of our then outstanding Class B ordinary shares, representing 54.9% of their total voting power assuming the underwriters do not exercise their over-allotment option, or 54.8% of their total voting power, if the underwriters exercise their over-allotment option in full.
Following the completion of this offering, Linen Investment Limited, a wholly-owned subsidiary of Tencent Holdings Limited, will hold 40.5% of their then outstanding Class B ordinary shares, representing 39.5% of their total voting power, assuming the underwriters do not exercise their over-allotment option, or 39.4% of their total voting power, if the underwriters exercise their over-allotment option in full.
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