China's Tencent Music raises nearly $1.1 billion in U.S. IPO
China-based music streaming company Tencent Music Entertainment Group`s
The IPO shows how companies are defying a bout of stock market volatility with flotations. It tops off a bumper year for U.S. listings by Chinese companies, with $7.9 billion raised prior to Tencent Music`s debut, Refinitiv data showed. That is the highest amount since 2014, the year of Alibaba Group Holding Ltd`s
Tencent Music`s U.S. IPO is the fourth largest among Chinese firms this year. Video streaming company iQiyi Inc
With streaming apps QQ Music, KuGou, Kuwo as well as karaoke app We Sing, Tencent Music is China`s largest online music platform boasting more than 800 million monthly active users. The firm is often compared with Spotify Technology SA
Tencent Music sold 41 million ADRs while existing shareholders sold a further 40.9 million, the source said, asking not to be identified ahead of an official announcement. The IPO gives the company a valuation of $21.3 billion.
Tencent Music declined to comment.
Tencent Music initially planned to launch the deal in October, but postponed because of a sell-off in global markets roiled by a U.S.-China trade war and fears of slowing global growth.
The final deal size is also smaller than the $3 billion to $4 billion that IFR, a Refinitiv capital markets publication, reported the firm had initially planned to raise in May. Tencent Music never confirmed fundraising figures.
One person close to the deal told Reuters the smaller figure was due to the company`s valuation falling as a result of market volatility.
Tencent Music reported a 244 percent profit jump for January-September to $394 million. By comparison, Spotify lost a net $520 million.
Bank of America, Deutsche Bank, Goldman Sachs, JPMorgan and Morgan Stanley are the lead sponsors of Tencent Music`s deal.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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