China’s Tencent Music to jingle $1.2 billion

China’s Tencent Music to jingle $1.2 billion from investors in its New York listing

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Tencent Music, owned by Chinese tech giant Tencent, dominates music streaming in China

According to a regulatory filing, Tencent Music aims to raise between $1.07 billion and $1.23 billion by going public on the New York Stock Exchange. Earlier this year, the company was reportedly seeking to raise $2 billion.

Tencent Music is aiming to sell 82 million shares to global investors for between $13 and $15 each. It could bid a further 12.3 million shares through an over-allotment option.

According to data provider, Dealogic, it would still be the 3rd largest Chinese IPO in the US since the beginning of 2018. Recently, video streaming platform iQiyi (IQ) raised $2.3 billion and social shopping app Pinduoduo (PDD) raised $1.6 billion.

Tencent claims 800 million monthly active users

The leading music service provider rules the music streaming market in China with a suite of apps through which users can listen to music, connect with other people to sing karaoke, or watch pop stars perform live. The company revealed in its SEC filing that its four music apps including QQ Music, Kugou, Kuwo, andWeSinghave more than 800 million monthly active users.

Spotify’s Stakes in Tencent Music

Spotify, which went public in New York Stock Exchange in April, owns a 9% stake in Tencent Music. Likewise, the Chinese company holds a stake in Spotify.

Tencent Music’s filing didn’t announced when its stock, which will have the ticker TME, will start trading in New York. Since Alibaba went public in 2014, Tencent Music’s IPO adds to the biggest year for Chinese tech listings. Similarly, other high-status IPOs include online services provider MeituanDianpingand smartphone maker Xiaomi, which both went public in Hong Kong.

Third Quarter 2018 Results, 24% increase since last year

Last month, Tencent announced 3Q 2018 results and they were quite impressive. According to Tencent, total revenues were RMB80,595 million (USD11716 million), an increase of 24% over the third quarter of 2017 (“YoY”).

Operating profit was RMB27, 861 million (USD4050 million), an increase of 22% YoY. Operating margin was broadly stable at 35% and the profit for the period was RMB23,405 million (USD3,402 million), which was an increase of 30% YoY. Also, the net margin increased to 29% from 28% last year.

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