China’s largest music-streaming company, Tencent Music Entertainment Group has revived its plan to go public and set terms for its initial public offering that is expected to raise up to $1.23 billion.
The company originally planned to launch its offering in mid-October, but then decided to delay the IPO over worries the global stock market rout would affect the pricing. Tencent is now rushing through its IPO to take advantage of the trade ceasefire between the US and China.
A source close to the deal told Reuters that Tencent Music was keen to get itself listed this year because it was “worried US-China trade tensions would worsen, not because it desperately needed fresh money.”
In a filing, the music arm of Chinese tech giant Tencent applied to list on the New York Stock Exchange and tech-laden Nasdaq under the symbol TME.
The music streaming giant is selling 82 million American Depositary Receipts in a range of between $13 and $15 apiece, according to the filing. Tencent Music could sell an additional 12.3 million shares if an over-allotment option is exercised.
READ: Chinese company Tencent Music files for US IPO as Sony and Warner Music snap up $200M in shares
Investors are likely to sit up and take notice that the Chinese music streaming company has posted an annual profit for the last two years.
The filing shows that in the first half of 2018, Tencent Music reported a profit of $263 million on revenue of $1.3 billion. For the entire 2017 year, it posted $199 million in profit on revenue of $1.7 billion.
Parent company Tencent owns 58% of the music division, while Spotify, which went public on US exchanges earlier this year, owns 9% of shares.
Meanwhile, another Chinese company, online fashion seller Mogu indicated it plans to sell 4.75 million American Depositary Receipts at a price between $14 to $16 to raise approximately $87.4 million.
Moderna Therapeutics (MRNA) is set to become the largest initial public offering setting IPO terms that could raise $521 million.
The company develops drugs for the treatment of infectious diseases, genetic disorders, cancer and cardiovascular diseases, by using messenger RNA technology to convey genetic information within cells.
The Moderna IPO plans to offer 21.7 million shares priced in the range of $22 to $24. That gives it a market valuation near $8 billion. At the high end of that range, Moderna would raise $521 million.
Contact Uttara Choudhury at [email protected]