Tencent Music, a Chinese company, has filed for an IPO in the United States, aiming to raise $1 billion. This move could make it one of the largest recent IPOs by a Chinese company in the US. The company, known for its music streaming services similar to Spotify, has over 800 million monthly active users on its music apps.
In the first six months of 2018, Tencent Music reported a profit of $263 million with revenue reaching $1.3 billion. The company stated in its SEC filing that it anticipates a significant increase in the number of people paying for music in China by 2023. This positive outlook is driving the company’s decision to go public.
Tencent Music’s IPO could value the company between $25 and $30 billion, making it one of the largest Chinese IPOs in the US since 2018. The company has not yet decided on the listing exchange, with options including the Nasdaq and the New York Stock Exchange. Tencent Music’s IPO announcement comes after other major Chinese tech companies like Xiaomi and Meituan Dianping also went public recently.
This move by Tencent Music reflects the growing trend of Chinese tech companies seeking to expand their reach and visibility in international markets. By going public in the US, Tencent Music aims to attract more investors and capitalize on the increasing demand for music streaming services in China and globally. Investors will be closely watching Tencent Music’s IPO process and performance to gauge the company’s potential for success in the competitive music streaming industry.