The listing is being underwritten by Goldman Sachs and Morgan Stanley. The IPO could value the company between $29 billion to $31 billion, on par with the Swedish online music juggernaut Spotify’s market value of $31 billion.
Tencent Music is the operator QQ Music, Kugou, and Kuwo. The three music streaming businesses claimed 254 million, 227 million and 111 million mobile users respectively in the first quarter of 2018, data from iResearch shows. Tencent Music controlled 78% of China’s music streaming market in 2017.
As of September 2017, the company inked a partnership with the world’s top record companies like Universal, Warner, Sony and YG Entertainment (South Korea) for streaming their catalogs. Together with NetEase Music and Ali Music Group, three of China’s top music streaming players entered cross-licensing agreements last year to end the years-long battle for copyrights.