Apac Business Headlines
Tencent Music Entertainment Group, a company that develops music streaming services for China market, is looking to raise funds worth nearly $2 billion in a U.S. listing, news agency Reuters reported citing three people privy to the deal.
Two weeks ago, Tencent Music Entertainment Group, the arm of Chinese multinational investment holding conglomerate Tencent Holdings, filed with the U.S. Securities and Exchange Commission (SEC) in confidence, the people in knowledge of the matter said.
It was earlier reported by Thomson Reuters’ publication IFR that Tencent Music Entertainment Group had been looking to raise any amount from $3-4 billion that would have made it the highest Chinese float in the US so far this year, much higher than streaming company iQiyi’s $2.42 billion IPO earlier this year.
As per IFR, Tencent Music Entertainment Group was looking for a valuation of nearly $25 billion during that period, the sources stated without divulging whether the presently smaller deal related to fewer shares to be sold or lower valuation.
As per two sources privy to the deal, the filing was submitted to the SEC on Sept. 7.
Tencent Music Entertainment Group operates the music service providers Kuwo, KuGou, and QQ Music, controlling 75 percent of the Chinese music streaming market. The company provides its listeners with a wide range of music to listen from Chinese artists to global stars such as Ed Sheeran, Bruno Mars, and Justin Bieber.
As per a report by industry body International Federation of the Phonographic Industry, the swift growth in streaming music services in recent years has resulted to a recovery in the fortunes of the international music industry that reported positive growth in its revenue for 2017.