China game-streaming firm Huya launches $343 million follow-on offering

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HONG KONG (Reuters) – Chinese game-streaming company Huya Inc, backed by Tencent Holdings Ltd, has launched a follow-on share offering of about $343 million to raise funds for investment in its content and e-sports partners.

FILE PHOTO: The Huya logo is shown on the NYSE boards ahead of the company’s IPO at the New York Stock Exchange (NYSE) in New York, U.S., May 11, 2018. REUTERS/Brendan McDermid/File Photo

Huya, which went public last year in New York, is part of a growing trend of Chinese tech companies returning to capital markets for cash soon after their initial public offering (IPO).

Huya is selling 13.6 million primary shares, the game-streaming firm company said in a stock exchange filing. At the same time, social media platform YY Inc is selling 4.8 million of Huya shares, the filing showed.

Based on its closing price of $25.23 on Monday, the combined sale could raise as much as $464 million.

There is an over-allotment – or greenshoe option – of up to 15 percent for Huya’s share sale, meaning the firm could raise as much as $394 million if exercised. There is likewise a 15 percent over-allotment for YY’s stake sale.

Huya is China’s biggest live-streaming