Tencent Music Entertainment (NYSE: TME) has chosen JPMorgan Chase and Morgan Stanley to arrange its secondary listing on the Hong Kong stock exchange, that is poised to take place as soon as this year, and in which it expects to raise up to USD 5 billion, Bloomberg reported on Friday, citing confidential sources. More banks could be added to the share sale and details including size and timeline could still change, it said.
TME, the music arm of Chinese tech titan Tencent, is the operator of the music streaming apps Music, Kugou, Kuwo Music, as well as Karaoke app WeSing. It went public in the US at the end of 2018 after securing USD 1.1 billion, and its stock price has more than doubled to USD 25 since then, reaching a market cap of USD 42.31 billion.
With 646 million monthly active users for its online music services and 235 million on social entertainment applications, the company posted total revenue of RMB 7.58 billion (USD 1.12 billion) for the third quarter of 2020, up 16.4% year-on-year.
Short video app Kuaishou (HKEX: 1024), which is backed by Tencent, on Friday morning raised USD 5.3 billion in the biggest public listing in Hong Kong, with its stock price almost tripling from HKD 115 to HKD 338 (USD 43.6).