Plus   Neg

Tencent Music Revives IPO Plan

Tencent Music Entertainment Group, the online music entertainment business of Chinese tech giant Tencent Holdings Ltd (TCEHY.PK) has revived plans for an initial public offering or IPO in the U.S.

Tencent Music is seeking to raise between $1.07 billion and $1.23 billion in the offering. The company had previously planned to launch its offering in mid-October, but reportedly delayed its decision due to global stock market sell-off in the past few months.

In a filing with the Securities and Exchange Commission on Monday, the China-based streaming music company said it is offering 82 million American Depositary Shares or ADSs, representing 164 million Class A ordinary shares, to the public.

The company is offering 41.03 million ADS, while its selling shareholders are offering 40.97 million ADS. Each ADS represents two of the company's Class A ordinary shares.

Tencent Music said it will sell an additional 12.30 million ADSs if an over-allotment option is exercised.

The company expects the IPO to price between $13 and $15 a share, with the ADSs approved to list on the NYSE under the ticker symbol "TME".

Immediately after the IPO, the company will have 84.28 million ADS outstanding and 3.27 billion ordinary shares outstanding. Tencent Music's controlling shareholder, Tencent Holdings Ltd. has agreed to buy Class A ordinary shares with an aggregate value of up to $32 million at the IPO price.

Tencent Music is China's largest music-streaming company. The company noted that its QQ Music, Kugou Music, Kuwo Music and WeSing apps are the top four music mobile apps in China by mobile monthly active users of MAUs in the third quarter of 2018.

Tencent Music counted 880 million MAUs in the third quarter of 2018, combining the music service and social entertainment platform. That's up from 823 million monthly users in the same period of 2017.

For the nine months ended September 2018, the company's net profit rose to RMB2.71 billion, or $394 million, from RMB785 million in the year-ago period. Total revenues for the period grew to RMB13.58 billion, or $1.98 billion, from RMB7.40 billion in the prior-year period.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The Bank of England is set to hold interest rates unchanged on Thursday as the economic outlook remains highly uncertain with the Theresa May government being accused of dilly-dallying on reaching a deal on Britain's exit from the European Union. The nine-member Monetary Policy Committee, led by Governor Mark Carney, is widely expected to leave the bank rate unchanged at 0.75 percent. Germany's producer price inflation remained at its highest level in 19 months in November, data from the Federal Statistical Office showed on Wednesday. Producer prices rose 3.3 percent year-on-year in November, same as in October. Economists had expected a 3.1 percent increase. The pace of increase... After failing to sustain an early move to the upside, stocks continued to experience substantial volatility over the course of the trading day on Tuesday. The major averages fluctuated wildly as the day progressed before closing in positive territory.
Follow RTT