Chinese game-streaming company Huya Inc, backed by Tencent Holdings Ltd, has launched a follow-on share offering of about 343 million U.S. dollars to raise funds for investment in its content and e-sports partners.

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 U.S. dollars on Monday, the combined sale could raise as much as 464 million U.S. dollars.

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 U.S. dollars if exercised. There is likewise a 15 percent over-allotment for YY's stake sale.

Huya is China's biggest live-streaming game platform, according to the offering prospectus, competing with Douyu which plans to go public in New York this year.

China boasts the world's largest gamer base in e-sports with about 266 million gamers in 2018, the prospectus showed.

Huya's shares have risen about 65 percent since the firm's IPO in May, in which it raised 180 million U.S. dollars.

Other companies from the 2018 IPO cohort returning for more funds include electric vehicle maker NIO Inc, video streaming company iQIYI Inc, e-commerce firm Pinduoduo Inc and video platform Bilibili Inc.

Bankers are pinning their hopes for 2019 on additional capital raising through follow-on offerings or convertible bonds as the crop of Chinese companies looking to go public thins out after a blockbuster 2018 in terms of IPOs.

Many of the companies that went public in 2018 raised less money than they had hoped for – partly due to global market jitters and partly because investors pushed back against lofty valuations – which will drive follow-on capital raising.

Huya will price its follow-on offering after New York markets close on Tuesday.

Citigroup, Credit Suisse, Goldman Sachs, and Jefferies are joint bookrunners for the deal.