Tencent Music Pauses IPO Amid Market Turmoil – The Wall Street Journal
What happened: Tencent Music, Tencent’s music streaming unit which reportedly planned a mid-October IPO, is postponing its initial public offering until at least November because of the selloff in global markets, The Wall Street Journal reported citing people familiar with the matter.
Why it’s important: After the IPO frenzy of Chinese tech companies since the beginning of this year, a recent market turmoil is going to put a pause on what would be one of the largest IPOs in the U.S. this year. But it sounds a reasonable decision to make. Chinese stocks suffered steep drop over the past week in the face of growing tensions with the US. Tencent Music filed for a US listing in early September, reportedly seeking to raise about $2 billion. Tencent Music IPO comes in wake of Tencent’s efforts to list its affiliates separately.