Quick Take: Live-Broadcaster Huya Leaves IPO Fundraising Target Intact

Huya Inc. has set the price range for its upcoming New York IPO, leaving its fundraising target intact in a sign of relative strength for what is likely to become the first U.S. listing from China’s hot live broadcasting segment.

Huya set a range of $10 to $12 for each of its American Depositary Shares (ADSs), with an aim of selling 15 million ADSs, the company said in an amended IPO prospectus filed with the U.S. securities regulator on Tuesday. If the shares price at the top of their range and underwriters exercise an overallotment option, the company could raise up to $207 million, according to the filing.

The company counts livestreaming social media platform YY Inc. as its largest shareholder, and Tencent Holdings Ltd. is also another major stakeholder.

The fundraising target’s stability as outlined in the original and updated prospectuses contrast with other Chinese firms’ New York listings early this year. Many of those other listings raised far less than their original targets. Two of the most recent offerings in late March, by online video firms iQiyi Inc. and Bilibili Inc., each ultimately priced in the middle of their range, in a sign that sentiment was improving.

According to its original prospectus, Huya has nearly 87 million monthly active users, each of whom spent an average of nearly 100 minutes per day on the company’s app. Its revenue grew 160% last year to 2.1 billion yuan ($333 million), while its net loss narrowed sharply to 81 million yuan from 626 million yuan the previous year.

Contact reporter Yang Ge (geyang@caixin.com)