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Tencent Music files for its New York Stock Exchange IPO

Tencent Music Entertainment has launched its initial public offering made a regulatory filing in preparation for its upcoming IPO 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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