Tencent Music Entertainment was slated to launch its highly anticipated IPO in the United States this month, but the latest rumors are that it has opted to postpone the action at least until November. Sources familiar with the music group’s plans told The Wall Street Journal that Tencent Music met with its underwriting team this week to set a price range for the IPO, but the company instead chose to wait in response to an unsteady market that would have a negative impact on the pricing.
Tencent could be raising as much as $2 billion in the IPO. However, two dips for the S&P 500 this week — a 3.29% drop on Wednesday and 2.06% on Thursday — gave the company pause on moving forward now.
The process of Tencent Music’s listing has been moving along at a steady pace, with the paperwork filed in October after the official announcement in July. But the foundation was first laid early, as speculation that parent company Tencent would spin out the music company dates back at least a whole year.