Tencent Music Entertainment Group, China’s biggest music-streaming company, is seeking to raise about US$2 billion in a US listing, according to three people close to the deal, down from the up to US$4 billion that had been touted earlier.
The subsidiary of Chinese tech giant Tencent Holdings filed confidentially with the US Securities and Exchange Commission (SEC) two weeks ago, three people with knowledge of the matter said, in what will be one of the biggest listings in New York by a Chinese company this year.
Tencent Music had earlier been seeking to raise between US$3 billion and US$4 billion, Thomson Reuters publication IFR reported, which would have made it the biggest Chinese float in the United States so far in 2018, ahead of streaming company iQiyi’s US$2.42 billion IPO in March.
The company then was seeking a valuation of about US$25 billion, according to IFR. The sources did not disclose whether the now smaller deal related to a lower valuation or fewer shares to be sold.
Tencent said in a statement in Chinese the Reuters report was not accurate. It did not elaborate or say which part of the report was inaccurate. “Please refer to official statements or announcements by the company for facts relating to the proposed offering,” it said.
Tencent Music runs the music service providers QQ Music, KuGou and Kuwo, controlling three-quarters of China’s booming music streaming market.
Users can listen to both Chinese and international artists such as Justin Bieber, Ed Sheeran and Bruno Mars.