Wednesday, December 12, 2018

Tencent Music starts trading on New York Stock Exchange, raises $1.1bn | Music Business Worldwide

Tencent Music Entertainment Group’s IPO has finally arrived.

The company has officially started trading on the New York Stock Exchange under the symbol TME as of today (December 12).

China’s TME, home to three of the country’s leading music streaming services; QQ Music, Kugou and Kuwo has raised around $1.1bn, having offered 82,000,000 shares at $13.

Its market valuation is $21.3bn.

Tencent Music was expected to float at a valuation of $29bn to $31bn when initial reports out of China suggested that its IPO date would be October 18.

An IPO registration document (Form F-1) was filed with the SEC on October 2 indicating $512m gross profits for H1 2018, but the IPO never arrived – with reports in November then stating that it was likely to be pushed back until early 2019, due to weak performance of Us tech stocks.

A form was filed with the SEC on December 3 as an amendment (No.1) to the original form filed on October 2, stating that the IPO would definitely take place before the end of 2018.

TME, which is majority-owned (58.1%) by Chinese media/entertainment giant Tencent counted over 800 million total unique Monthly Active Users in Q3 2018 according to the SEC filing posted on December 3.

The offering is expected to close on December 14, 2018, subject to customary closing conditions.

Morgan Stanley, Goldman Sachs, J.P. Morgan, Deutsche Bank Securities Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint bookrunners of this offering. Music Business Worldwide


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