Chinese streaming giant ?Tencent Music enters a bruised U.S. stock market today after raising $1.1 billion in a closely watched IPO, with shares starting at $13 on the New York Stock Exchange. When it firmed-up its listing plans earlier this month, the firm said it wanted to raise between $1.07 billion and $1.23 billion.
The company said that out of 82 million American depositary shares (ADS), half will be sold by Tencent Music while the other half will be moved by existing shareholders. With its IPO price, TME is valued at $21.3 billion, slightly less then Spotify’s $24 billion value.
The Tencent Holdings subsidiary had originally planned to launch its American IPO in October, but delayed as fellow tech companies experienced global market selloffs amid trade tensions between the U.S. and China. The $1.1 billion entry is conservative compared to the earlier reported $2 billion target, though the company never confirmed that figure.
The shares start trading today on the NYSE under the ticker symbol TME.
TME is actually the third-largest Chinese IPO in the U.S. for the year, coming in at half of streaming video platform iQiyi ($2.13 billion in March) and just behind shopping app Pinduoduo ($1.6 billion in July).
Tencent Music currently runs the four top mobile music apps in China by monthly active users, namely QQ Music, Kugou Music, Kuwo Music and WeSing. Combined, the four services have over 800 million monthly active users, according to the parent company’s F-1 filing. Tencent Holdings has a 58 percent stake in TME, while Spotify took 9.1 percent following a stock swap late last year. An earlier IPO filing also revealed that Warner Music and Sony Music purchased a total of 68,131,015 ordinary shares in TME, worth approximately $200 million.