BENGALURU: Shares of China-based music streaming company Tencent Music Entertainment Group rose in their US debut on Wednesday, as investors shrugged off volatile markets to grab a piece of the fast-growing music streaming industry.
The company’s shares opened at US$14.10 (RM58.93), or 8.5% above their initial public offering price (IPO) of US$13 per share, giving Tencent a market capitalisation of about US$23 billion — on par with Swedish peer Spotify Technology SA’s current valuation. Spotify is an investor in the Chinese company.
The IPO raised US$1.1 billion in proceeds and is one of the largest by a Chinese company in the US this year, behind the US$2.4 billion raised by video streaming company iQiyi Inc, the US$1.6 billion garnered by online group discounter Pinduoduo Inc and the US$1.15 billion by electric vehicle maker NIO Inc.
The debut marks an end to a tumultuous listing journey that saw the firm delay its IPO plans until November in a market weakened by trade tensions between the US and China.
Tencent Music finally launched its hotly anticipated IPO a day after US and Chinese leaders brokered a 90-day truce in their trade conflict last week. — Reuters