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Tencent Music composes USD 1.41bn IPO
Posted on Monday, 03 December 2018 14:42
Tencent Music has pressed the play button on its hugely-anticipated initial public offering (IPO) comprising an American depository share issue worth up to USD 1.41 billion.

Morgan Stanley, Goldman Sachs Asia, JPMorgan, Deutsche Bank Securities and Bank of America Merrill Lynch have scored lead positions on the sale of 82.00 million securities at USD 13.00 to USD 15.00 apiece.

New York Stock Exchange is the destination of the IPO by China’s largest online music entertainment platform, based on mobile monthly average users (MAUs) of more than 800.00 million in the third quarter of 2018.

Tencent Music’s platforms comprise Q Music, Kugou Music and Kuwo Music, karaoke social community WeSing and the interactive online stages Kugou Live and Kuwo Live for performers and users to showcase talent.

In terms of content, the group had a library of over 20.00 million tracks licensed from more than 200 domestic and international labels.

Do not forget, the platform also has “unique access to Tencent’s massive user base, representing China’s largest online social community”.

This comprises “over one billion MAUs of Weixin and WeChat combined and 803.00 million MAUs of QQ [Tencent Music’s music mobile app] in the third quarter of 2018, which facilitates the organic growth of our user base”.

In the nine months ended 30th September 2018, the group’s revenue reached CNY 13.59 billion (USD 1.98 billion), compared to CNY 7.40 billion over the same combined three quarters in 2017.

Online music services and music-centric social entertainment services and others accounted for 29.6 per cent and 70.4 per cent of turnover in Q1-3 2018.

Tencent Music is using proceeds to: boost the variety, quality and quantity of its content; bankroll product and service development; and roll out marketing and promotions to strengthen its brand and grow its paying user base.

Money will also fund strategic investments and acquisitions and support general corporate activities.

© Zephus Ltd