Game streaming platform Douyu plans IPO in HK to raise up to US$700m

Game streaming platform Wuhan Douyu Network Technology Co is planning an initial public offering in Hong Kong to raise up to US$700 million, media reported on Thursday.

The company aims to be listed in the third quarter, the South China Morning Post reported on Thursday citing unidentified sources.

Douyu declined to comment on the issue on Thursday.

Douyu, founded in 2014, raised about US$630 million in the latest round of investment financing in March, and Tencent is one of the investors.

Douyu drew over 521,800 visitors and an online audience of 230 million to its latest carnival in May held in Wuhan, capital of Hubei Province. It attracted partners from the automotive, telecom and smartphone industries, highlighting the growing influence of e-sports.

Douyu is one of the latest Unicorn firms, referring to private firms valued at above US$1 billion each, as investors ride on the booming wave of the game and e-sport sectors.

Revenue from China’s e-sports market is expected to surge 21 percent from last year to 78.6 billion yuan (US$12.5 billion) this year, according to researcher China Insights Consultancy.