China’s Tencent Music has revived its plans to list in the US and raise up to $1.2bn (£940m). It would be one of the largest listings by a Chinese company on the New York Stock Exchange this year.
The initial public offering, originally mooted in October, had been delayed by the turmoil sparked by the Chinese-US trade war, reports BBC.
The listing of the music arm of China’s technology company Tencent Holdings is expected to value it at up to $25bn. Spotify, the Swedish music streaming service, was listed in the US in April with a $26bn valuation. Its shares have had a rollercoaster ride since then and is now worth only $24.3bn.
A Tencent sign is seen during the fourth World Internet Conference in Wuzhen, Zhejiang province, China
While Tencent appears to have scaled back the amount it wants to raise, it has resumed its plans after markets rallied following talks between China and the US at the G20 summit over their trade dispute.
Presidents Donald Trump and Xi Jinping agreed to a temporary truce in their bitter dispute. Tencent also owns QQ Music and Kugou, and is said to have over 700 million monthly active users. Tencent Music’s decision to file for a share listing makes it the latest Chinese company to seek investors in the US.
Data from Refinitv shows that Chinese companies have raised $7.8bn from share offerings this year in the US, with video streaming company iQiyi raising $2.4bn.