Tencent Music takes first steps towards IPO – report

Tencent Music Entertainment [TME] is taking the first official steps to launch its IPO – expected in the second half of 2018-  by inviting investment banks to pitch for a role.

The Chinese streaming giant will decide who will help it float for an IPO in the US that’s expected to value it at $25 billion, according to this Reuters report.

Tencent Music reportedly has plans to raise up to $4bn for TME.

The move follows Spotify’s direct listing on the New York Stock Exchange in April that was facilitated by Morgan Stanley, Goldman Sachs and Allen & Co.

Its official debut public price was $166 per share, resulting in a market cap worth approximately $29.6bn, which has since dropped to $28.5bn.

Tencent’s $25bn price tag is more than double the $10bn valuation the company received after its most recent funding round.

The firm is majority owned by Tencent Holdings, which currently has a market cap value in excess of US $500bn on the Hong Kong Stock Exchange.

Since its last funding round, Tencent Music has traded a 10% ownership stake with Spotify, launched a label with Sony Music and led a $115m investment round in India-based streaming platform Gaana.

Should the company reach a $25bn public valuation, it would be the fourth biggest US-listed technology IPO on record.

Music Business Worldwide

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