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Knight Investment Limited – Tencent Music files plans to raise up to $1.2bn
Tencent Music Entertainment on Monday launched its initial public offering as global stock markets rallied after a weekend ceasefire in the trade war between the US and China.
Based on that range, the entire offer will raise up to $1.2bn with $615.4m going to Tencent Music and the rest to selling shareholders. The filing also said Tencent Holdings, the controlling shareholder of Tencent Music, has agreed to purchase up to $32m worth of shares.
The Tencent-backed streaming company, which has a reciprocal holding in Spotify, had already halved its ambition to raise $4bn down to about $2bn.
The company plans to list on the New York Stock Exchange around December 12.
The formal launch of the IPO on Monday comes after the group had delayed its listing in October after a sell-off in global markets.
People with knowledge of the situation said last month the company was hoping to press on with its deal after the widely awaited G20 summit that was expected to play host to US-Sino trade negotiations.
Over a steak dinner in a luxurious hotel, US president Donald Trump and his Chinese counterpart Xi Jinping came up with a tariff ceasefire that was cheered by markets on Monday. At midday in New York, the S&P 500 was up 0.8 per cent, while Asian bourses overnight rallied between 1 per cent and nearly 3 per cent.
Knight Investment has forecast that the overall size of China's online music pan-entertainment market will grow from Rmb33bn ($4.7bn) last year to Rmb215.2bn in 2023 — a compound annual growth rate of 36.7 per cent.
To find out more information on the opportunities Knight Investment Limited see's within the US markets, specifically TME impending IPO, contact us today at info@knight-
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