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Tencent Music launches New York Stock Exchange IPO

Tencent Music Entertainment has launched its initial public offering on the New York Stock Exchange. The music arm of the Chinese conglomerate Tencent is looking to raise between $1.07 billion and $1.23 billion in this move. It is targeting a valuation between $22 billion and $25 billion. Tencent Music boasts more than 800 million monthly active users across its properties: streaming apps QQ Music, Kugou, and Kuwo along with karaoke app WeSing.

In the IPO, Tencent Music Entertainment is selling 82 million American Depositary Receipts priced between $13 and $15 apiece. The company could sell an additional 12.3 million shares if it exercises an over-allotment option.

The IPO had been slated for October, but Tencent chose to delay the move and wait for more favorable market conditions. China and the United States called a hiatus to their trade war this weekend. While that did relax the market attitudes and led to generally increased Asian share prices, a source close to the deal told Reuters that Tencent wanted to list this year to avoid the impact of continued international tensions.

“It’s not worth waiting any longer for a potentially higher valuation if they have to deal with so many uncertainties,” the source said.

Anna Washenko

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