IPO of the music business belonging to Tencent failed to raise the expected money but succeeded in picking up pace after the trading started. It started to trade on the NYSE or New York Stock Exchange with TME or time ticker. As a result, the stock rose by 13% in the first day, ending up with $14.70 per share.
In China, Tencent Music is the dominating music streaming company. It mentioned that the listing is sitting at the bottom of the range; the internet giant had expected it to perform. It has a suite of apps that allow the users to listen to music, sing karaoke with other people within the network, and see the pop singers perform in live concerts. Currently, the price per share is $13, which is helping the company to raise around $1.1 billion. This is half of the total amount anticipated to rise in the previous year.
Tencent Music has decided to go public at a time, which is volatile for tech stocks and have been affected by the ongoing trade war between China and the United States. The IPO for the musical giant was delayed in October due to the turbulent nature of the market. However, it had announced to proceed with the IPO after Washington and Beijing conjointly decided to hold the trend of hiking the taxes for 90 days.
The IPO price of Tencent Music will give the shares a market value of $21.3 billion and will remain a subsidiary of Tencent or TCEHY, which is the parent company. Currently, SPOT or Spotify is trading below its IPO price, which gives the shares a market value of $23.3 billion. This is a global music streaming service and listed under NYSE in April. On Wednesday, the stock prices witnessed uplift, raising the prices up to 3%.