Tencent Music announced its intention to become public in the United States which could be one of the latest US IPO of a Chinese company. The company has set an objective of raising $1Billion, which would take valuation figures of the company somewhere between $25 and $30 Billion, as per the SEC filing.
According to Dealogic, the data provider of this funding would be the third IPO of Chinese companies in the US since the beginning of 2018. A platform similar to Netflix video platform, iQIYI, generated $2.3 billion and social application shopping Pinduoduo, bagged $1.6 Billion.
Tencent Music dominates the Chinese music streaming market with its Spotify applications. The company unveiled in its SEC file that its services had over 800 Million monthly active users. Spotify owns Tencent Music stake that is valued around 9% stake.
Entertainment subsidiary Tencent announced a profit of $263 Million for the first 6 Months of 2018, with sales of $1.3 Billion.
“We are pioneers in the way people enjoy social entertainment and online music services geared toward music,” a statement said, adding that the number of people paying for music in China will expand more than 4x higher amid 2017 and 2023.”
It would be represented as TME, but the company has not yet decided the exchange listing for trading. It might choose New York Stock Exchange and Nasdaq.
The Tencent Music IPO follows a wave of big announcements from Chinese tech companies in the recent period, comprising a smartphone manufacturer, Xiaomi and Meituan Dianping, an online services provider.
Moreover, Looking at the growing complexities has also recently announced about its restructuring in last 6 Years. Implementation of strict government regulations has forced the China’s Internet giant to call out the restructuring plans.
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