Company profile

Proposed ticker
DOYU
Exchange
CEO
Shaojie Chen and Wenming Zhang
Employees
2,080
Incorporated in
Location
Fiscal year end
SEC CIK

DOYU IPO information

17 July 2019
Expected IPO date
$11.50
$14.00
67.39M
$859.19M
$7.06M
10.11M
22.46M
324.62M
Use of proceeds: We estimate that we will receive net proceeds from this offering of approximately US$565.7 million, or approximately US$651.6 million if the underwriters exercise their option to purchase additional ADSs in full, based on an assumed initial public offering price of US$12.75, the midpoint of the estimated public offering price range shown on the front cover of this prospectus, before deducting underwriting discounts and commissions but after deducting the estimated offering expenses payable by us. The net proceeds of this offering will be further reduced by underwriting discounts and commissions as agreed upon by us, the selling shareholders and the underwriters for this offering. We will not receive any of the proceeds from the sale of the ADSs being sold by the selling shareholders. We plan to use the net proceeds of this offering as follows: • approximately 35% for investment in our content with a continued focus on providing premium eSports content and further expanding our content genres; • approximately 30% for research and development, to continue to strengthen our technologies and big data analytic capabilities to enhance user experience and achieve operational efficiencies; • approximately 15% for further investing in marketing activities for promoting our brand and increase our user base; and • the balance for general corporate purposes, which may include working capital needs and potential strategic acquisitions, investments and alliances. The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. Our management will have significant flexibility in applying and discretion to apply the net proceeds of the offering. If an unforeseen event occurs or business conditions change, we may use the proceeds of this offering differently than as described in this prospectus. Pending use of the net proceeds, we intend to hold our net proceeds in short-term, interest-bearing, financial instruments or demand deposits. In utilizing the proceeds from this offering, we are permitted under PRC laws and regulations to provide funding to our PRC subsidiaries only through loans or capital contributions, and to our consolidated VIEs only through loans, subject to the approval of government authorities and limit on the amount of capital contributions and loans. Subject to satisfaction of applicable government registration and approval requirements, we may extend inter-company loans to our wholly foreign-owned subsidiary in China or make additional capital contributions to our wholly-foreign-owned subsidiary to fund its capital expenditures or working capital. For an increase of registered capital of our wholly foreign-owned subsidiary, we need to submit recordation of modification documents with the State Administration for Market Regulation, or the SAMR, or its local counterparts within 30 days of such increase of registered capital. If we provide funding to our wholly foreign-owned subsidiary through loans, the total amount of such loans may not exceed the difference between the entity's total investment as approved by the foreign investment authorities and its registered capital, or certain amount calculated based on elements including capital or net assets and the cross-border financing leverage ratio. Such loans must be registered with SAFE or its local branches, which usually takes up to 20 working days or longer to complete, and the competent development and reform commission in case of any external debts of more than one year. We cannot assure you that we will be able to meet these requirements on a timely basis, if at all.
Competition: Game-centric live streaming is an emerging industry in China. As a leading player in this market, we face competition from providers of similar services, and other online entertainment platforms. Other game-centric live streaming compete directly with us for viewers and streamers. In addition, we compete with other large video streaming platforms, social media platforms, and other platforms offering online entertainment. We believe that our ability to compete effectively for users depends upon many factors, including the quality and variety of our content, user experience on our platform, recruitment and retention of top streamers, capability to adjust to changes in technology and customer tastes and the strength of our brands.

Calendar

15 Jul 19
31 Dec 19
17 Jul 19

News

Company financial data

$221.89M
$2.79M
$257.06M

Financial reports

No filings

Current reports

No filings

Proxies

No filings

Other

No filings