China streaming giant Tencent Music tunes up for massive IPO
1 year ago Market watch 0
Tencent Music Entertainment Group, China’s largest music-streaming company, is preparing what would be one of the biggest technology IPOs ever following the successful debut of its European counterpart, Spotify Technology SA.
The digital-music business of Chinese internet giant Tencent Holdings Ltd. 0700, -1.55% plans to interview potential underwriting banks over roughly the next month, according to people familiar with the matter.
The initial public offering, potentially coming in the second half of 2018, would be one of the largest deals of the year and is expected to raise billions in proceeds, some of the people said. Tencent Music is expected to list in the U.S., but it is unlikely to make a final venue decision for several months, they said.
Tencent Music’s offering could value the business in excess of $25 billion, some of the people said. This was the company’s value in recent private transactions, The Wall Street Journal reported last month. That was a sharp jump from its $12.5 billion valuation in late 2017 when Swedish music-streaming company Spotify SPOT, +3.24% bought a 9% stake in the company as part of a share swap.