Business

Tencent Looking To Spin-Off And List Its Music Unit In US

Tencent Holdings Ltd., Chinese Internet giant, announced that it is seeking for a spin-off and listing its online music company, which is one of China’s largest music streaming company, in the United States.

The anticipated listing is a sign that the once failing music industry is returning back on the track, as more listeners are broadcasting music through smartphone applications, even if companies are struggling with piracy and are furiously looking to sign up more customers.

Spotify Technology SA, the market leader, debuted in April with its own shares and structured the listing so that existing investors could trade straight with the public.

Total 9% of Tencent Music is owned by Spotify, while Tencent Holdings holds a 7.5% stake in Spotify, as per the IFR estimates from Thomson Reuters in April.

Tencent Music is looking for an IPO in the stock market worth up to $4 Billion and estimates it to be about $25 Billion, IFR reported in April, referring to people familiar with the plans.

The clause of the proposed listing include the price range, the size of the offer, and the right to Tencent Music securities for the company’s shareholders, is not yet final, Tencent said in a filing on Sunday. Further explanations will be made, the company added.

Listing in the US is a blow to Hong Kong’s objectives to provide more technology companies with access to the stock market of the city by easing the listing rules, but the new rules still do not permit business entities to benefit from the subjective voting rights.

However, the city managed to hold the Chinese manufacturer of smartphones, Xiaomi Corp., which newly raised $4.72 Billion in its IPO, which is also the world’s leading technology float in 4 Years. Xiaomi shares fell by 2.9% on Monday’s debut.

Jeanne Anderson

Jeanne’s long-standing experience in the field of business and industry research is reflected in her insightful news articles as presented on Share Tech News. Her interest lies in covering Technology and Internet World on these increasingly consumer-oriented industries. Her understanding of Technical News Writing techniques gives her news stories an engaging twist.

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