|
The proposed listing is a sign that the
once-flagging online music industry is getting back on track as
more listeners take to streaming music through smartphone apps
even as companies battle piracy and try to sign up more paying
customers.
Market leader Spotify Technology SA debuted its own shares in
April, structuring its listing to allow existing investors to
sell directly to the public.
Spotify owns about 9 percent of Tencent Music, while Tencent
Holdings owns a 7.5 percent stake in Spotify, according to
calculations by Thomson Reuters publication IFR in April.
Tencent Music is seeking an initial public offering worth up to
$4 billion, valuing it at about $25 billion, IFR reported in
April, citing people familiar with the plans.
Terms of the proposed spin-off, including offering size, price
range and entitlement of Tencent Music securities for the
company's shareholders, have not yet been finalised, Tencent
said in a filing on Sunday. Further statements will be made, it
added. (https://bit.ly/2J52UxP)
The U.S. listing is a blow to Hong Kong's ambitions of getting
more tech companies onto the city's bourse by loosening listing
regulations, but the new rules do not yet allow corporate
entities to benefit from weighted voting rights.
Even so, the city managed to snag Chinese smartphone maker
Xiaomi Corp, which recently raised $4.72 billion in its IPO -the
world's biggest technology float in four years.
Xiaomi shares dropped 2.9 percent on debut on Monday.
(Reporting by Donny Kwok in Hong Kong and Sayantani Ghosh in
Singapore; Editing by Stephen Coates)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
|
