Following the Spotify IPO, now Chinese media giant Tencent has confirmed plans for a US listing for its music business.
Tencent submitted the proposals to the Hong Kong Stock Exchange, which has confirmed that Tencent Music Entertainment can be spun off with a public offering in the US. Early reports suggest a possible valuation of around $30 billion (£22.6bn) – higher than initial estimates and similar to Spotify’s current market capitalisation.
Tencent Music Entertainment owns digital music platforms QQ Music, KuGou and Kuwo. While it reportedly has around 600 million users, only around 15m are paying subscribers.
China has long been targeted as a potential major market for the music industry, with the latest IFPI global report confirming its increasing value to the biz.
The filing said potential investors should be aware that there is no assurance the proposed spin-off will happen.
"Shareholders and potential investors of the company should therefore exercise caution when dealing in or investing in the securities of the company,” said a financial statement.
Tencent and Spotify announced equity investments in each other prior to the Swedish streaming giant’s IPO.