Guangzhou-based game livestreaming platform Huya Inc said it could raise more than US$500 million through a secondary share offering, following the footsteps of other Chinese internet heavyweights such as broadcasting specialist Bilibili and news aggregator Qutoutiao, who have recently raised big funds on positive sentiment, reports Caixin Global.
Under its plan, Huya and an existing shareholder would sell up to 21.16 million of the company’s American depositary shares (ADSs). That would translate to total fundraising of about $534 million, based on the company’s latest share price.
Huya is growing strongly in terms of revenue and is among the major industry players that is profitable. In its latest financial report it said its revenue doubled in last year’s fourth quarter to RMB1.5 billion (US$224 million), while its profit jumped 20-fold to nearly RMB100 million.