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