Tencent Music Entertainment (TME), a spin off of Chinese tech giant Tencent Holdings raised close to $1.1 billion through an US IPO after pricing its shares at $13 per share – the bottom of its stated range.
TME is a major digital music streaming service in China with nearly 800+ million active monthly users according to the Form – F1 filing. The streaming service operates QQ Music, in addition to KuGou, Kuwo and WeSing and has reported a total revenue RMB 8.6 billion in first six months of 2018.
TME IPO Key User Statistics:
|Monthly Active Users across four apps||800 million +|
|Average time spent per day per daily active users||70 minutes +|
|Total Music Labels (Domestic + International )||200 +|
|Revenue growth||92.2% YoY|
Related: SoftBank Telecom to go public.
A few months back Tencent Holdings which is listed in Hong Kong has announced the spin-off of Tencent Music to prepare the platform for the planned IPO. Back in 2017, music streaming platform Spoitfy bought 9 percent stake in Tencent Music while Tencent Music bought 7.5 percent stake in Spotify under a reciprocal agreement.
At the listing price TME is valued at an impressive $21.3 billion, while its partner Spotify was valued just below the $30 billion when it went public earlier this year through an unconventional direct listing. TME was valued at $12 billion at the time of Spotify’s listing, making nearly 75% jump in valuation.
On Wednesday – day 1 of trading TME shares opened at $14.10 or 8.5 percent above their IPO price of $13 per share, taking the market capitalization to about $23 billion on par with Swedish peer Spotify Technology SA’s. Spotify’s valuation eroded nearly one-third since its listing in April 2018. Spotify reported 71 million paying subscribers and more than 159 million monthly active listeners as of December, 2017.
Notable Chinese listings this year in the US include the $2.4 billion raised by video streaming company iQiyi Inc, the $1.6 billion garnered by online group discounter Pinduoduo Inc (PDD.O) and the $1.15 billion by electric vehicle maker NIO Inc.