Tencent Music, a Chinese company, is planning to go public in the United States with a $1 billion IPO. This move could make it one of the largest recent IPOs by a Chinese company in the US. The company, known for its Spotify-like music streaming apps, has over 800 million monthly active users and reported a profit of $263 million in the first half of 2018. Tencent Music predicts a significant increase in the number of people paying for music in China by 2023.
With a potential valuation between $25 and $30 billion, Tencent Music’s IPO would be the third largest Chinese IPO in the US in 2018, following iQIYI and Pinduoduo. Spotify currently holds a 9% stake in Tencent Music. The company aims to revolutionize online music and music-centric social entertainment services.
While the company has not yet decided on the listing exchange, the symbol for Tencent Music would be TME. It is considering listing on either the Nasdaq or the New York Stock Exchange. This move by Tencent Music follows a trend of Chinese tech companies, such as Xiaomi and Meituan Dianping, going public in the US in recent months.
Overall, Tencent Music’s IPO signifies its ambition to expand its market presence and capitalize on the growing demand for music streaming services in China. With a strong user base and promising financial performance, Tencent Music is poised to make a significant impact in the music industry both in China and globally.