Chinaโs Tencent Music raises nearly $1.1 billion in U.S. IPO โ Reuters
What happened: Tencent Music said it raised around $1.1 billion in its IPO, pricing at $13, the low-end of its targeted range. The IPO values Tencentโs music streaming affiliate at $21.3 billion. The companyโs US IPO is the fourth largest among Chinese firms listed in 2018 by deal value. Having more than 800 million monthly active users, Tencent Music is Chinaโs biggest music streaming firm. The companyโs shares will start trading today (Dec. 12).
Why itโs important: Tencent Musicโs stock performance is worth watching as it could show investor confidence amid China-US tensions. It may also allow domestic firms to evaluate any listing plans, particularly while China is accelerating the launch of a Shanghai-based tech board. It will also be a crucial point for parent company Tencent to optimize and adjust internal business structures for enhancing its profitability amid its shift from consumer-based platforms to those targeting enterprises.
