Hong Kong based Tencent Holdings has submitted a proposal to the Hong Kong Stock Exchange to spin-off its Tencent Music Entertainment Group (Tencent Music) on the New York Stock Exchange. Tencent Music is the leading online music entertainment platform in China and Chinese media sources believe that Tencent Music will be valued at between $29 bn and $31 bn after this flotation. The Initial Public Offering (IPO) is expected to raise up to $4 bn and exact details of the offering are yet to be finalised.
Tencent Music dominates the music streaming market in China through its QQ Music, KuGou and Kuwo services. The company has around 600 million users with 15 million of them being paying subscribers.
Tencent, which has a market value of around $480 bn, owns a range of internet businesses, including WeChat, a messaging app that has more than one billion users.
One of Tencent’s investors is Spotify and the two companies don’t currently compete in the Chinese market although this may change as they both search for growth opportunities in Southeast Asia.
Recent articles of interest
Spotify grows users, revenues and losses
Spotify goes public
Spotify takes the first step to going public
Sonos files to go public
