China’s largest music-streaming company, Tencent Music Entertainment Group priced its IPO at the low end of expectations, but still marking one of the biggest US-listed debuts in recent years.
The music arm of Chinese tech giant Tencent priced 82 million American depositary shares at $13 per share Tuesday, the bottom end of its $13-to-$15 expected range. The offering raised roughly $1.1 billion for the company and its selling shareholders.
Tencent Music will start trading on the New York Stock Exchange Wednesday under the symbol TME.
The company originally planned to launch its offering in mid-October, but then decided to delay the IPO over worries the global stock market rout would affect the pricing. Tencent rushed through its IPO this week to take advantage of the trade ceasefire between the United States and China.
The filing shows that in the first half of 2018, Tencent Music reported a profit of $263 million on revenue of $1.3 billion. For the entire 2017 year, it posted $199 million in profit on revenue of $1.7 billion.
Parent company Tencent owns 58% of the music division, while Spotify, which went public on US exchanges earlier this year, owns 9% of the shares.
Contact Uttara Choudhury at [email protected]