Tencent Music raises $1 billion in US IPO: report
New York (AFP) –
Tencent Music, the streaming division of Chinese technology giant Tencent, will raise around $1 billion from the pricing of its US public share offering, the Wall Street Journal reported Tuesday.
The newspaper, citing a source familiar with the deal, said the initial public offering (IPO) values Tencent Music at $21.3 billion, making it one of the largest tech debuts on Wall Street.
That valuation is somewhat lower than some forecasts earlier this year that valued the music unit at $25 billion or more.
Documents filed Monday with the US Securities and Exchange Commission said the IPO would be offered in a range of $13 to $15 a share, and the Journal reported the offering prices was at the low end at $13.
The filing said the company had achieved "growth and profitability at scale" with revenue of $1.9 billion in the first nine months of the year and a profit of $474 million.
Tencent's platforms across China include QQ Music, a start-up streaming service similar to Spotify that has the rights to stream songs from US-based Warner Music, among others.
The company said it planned to use the proceeds to "enhance our music content offerings to improve the variety, quality and quantity of content on our platform: and to help grow its base."
Parent firm Tencent is one of the largest tech firms in China with the WeChat social media platform and some one billion users.
Tencent also operates a variety of businesses including gaming and advertising and is seeking to invest more aggressively in online video, cloud services and artificial intelligence.
The IPO is one of several in the United States by big Chinese technology firms including Alibaba and Baidu.
© 2018 AFP