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China’s Tencent Music presses play on US$1.2 billion US IPO

  • Valuation lower than anticipated US$2 billon but would still be one of the largest by a Chinese firm in the US this year

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Visitors at a booth of Tencent Music Entertainment in Beijing, China. Photo: Reuters

Tencent Music Entertainment launched its hotly-anticipated US initial public offering (IPO) of up to US$1.2 billion on Monday after global stock markets were boosted by a truce brokered by US and Chinese leaders in their trade conflict.

The music arm of tech giant Tencent Holdings is looking to raise between US$1.07 billion and US$1.23 billion in a New York Stock Exchange IPO, according to a filing with the US Securities and Exchange Commission.

The company originally planned to launch its offering in mid-October, according to an earlier report.

But it then decided to delay the IPO over worries the steep global stock market sell-off in the past few months would affect the pricing.

The decision by China and the United States to call a 90-day hiatus on their trade war over the weekend sent Asian shares soaring on Monday as markets breathed a sign of relief that tensions would ease, at least temporarily.

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