China’s largest music-streaming company Tencent Music Entertainment Group has filed an initial public offering (IPO) in the United States under the symbol “TME”. This is expected to be the biggest US IPO by a Chinese company.
The company is expecting a valuation of about $25 billion. It includes Spotify-like digital streaming apps QQ Music, Kugou and karaoke app WeSing. The music company is expecting to raise an amount in its first IPO filings which is used to calculate registration fees. The final size of the IPO could be different.
Market leader Spotify debuted in April and its shares rose nearly 13% on the first trading day. The company also reported a profit of $263 million on a revenue of $1.30 billion for six months ended June 30.
Tencent owns 58.1% stake in Tencent Music, and on the other hand, Spotify owns 9.1% stake in Tencent Music following a share swap in December last year, after which Tencent ended up with a 7.5% stake in Spotify.
Chinese companies from a few months have been quite active in filing for IPO and have already raised $5.9 billion from listing in the U.S. so far this year.