China’s Tencent Music jumps 11% in US debut
The company’s shares opened at 8.8% above their IPO price, giving it a market capitalisation of about $23bn
Shares of China-based music streaming company Tencent Music Entertainment rose about 11% in their US debut on Wednesday, as investors shrugged off volatile markets to grab a piece of the fast-growing music streaming industry. Naspers owns 31.2% of Tencent. The company’s shares opened at $14.15, 8.8% above their initial public offering (IPO) price of $13 per American depositary receipt, giving it a market capitalisation of about $23bn — at par with Swedish peer Spotify Technology’s current valuation. Spotify is an investor in the Chinese company. The IPO raised $1.1bn in proceeds and is one of the largest by a Chinese company in the US this year, behind the $2.4bn raised by video streaming company iQiyi , the $1.6bn garnered by online group discounter Pinduoduo and the $1.15bn by electric-vehicle maker NIO. The debut marks an end to a tumultuous listing journey that saw the company delay its IPO plans until November in a market weakened by trade tensions between the US and China. It ...
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