Tencent Music said to delay US listing because of stock market turmoil
The possible listing delay comes after a global stocks plunge amid rising US and China trade tensions
Tencent Music Entertainment Group, China’s biggest music-streaming company, is set to postpone an initial public offering in the US amid current market turmoil, according to a report by The Wall Street Journal.
The online-music arm of China’s largest social-media company, which filed for an IPO on October 2, met with its underwriting team this week and they opted to delay until at least November amid concerns the market rout would affect pricing, a person familiar with the situation told The Journal.
Tencent Music was expected to kick off a roadshow to sell shares next week and start trading the following week.
Tencent Music declined to comment on the IPO delay report.
The possible listing delay comes after a global stocks plunge amid rising US and China trade tensions, which has rattled the tech sector in particular on a view that slowing economic growth will hit consumption and earnings. The Dow Jones Industrial Average and the S&P 500 suffered two-day losses in excess of 5 per cent as of Thursday’s close and on Wednesday the tech-focused Nasdaq logged a 4.1 per cent loss, its biggest decline of 2018.