Tencent Music Is Officially Prepping a Hong Kong Stock Listing

About 6 months following disclosing its intention of spearheading a secondary stock listing, Tencent New music (NYSE: TME) is reportedly making ready to make shares offered on Hong Kong’s exchange “as soon as subsequent week.”

Update (9/15): Tencent Songs has confirmed its Hong Kong listing strategies, and shares are predicted to start off trading as “1698” next Wednesday, September 21st. In a different launch, the firm quietly declared that Liang Tang had resigned from the board, with a single Jeanette Kim Yum Chan (now main authorized, compliance, and possibility officer at Australia’s Airwallex) signing on as an “independent director.”

An current director, Edith Manling Ngan, has changed Tang on the board’s payment committee. Below is our primary coverage of Tencent Music’s secondary listing.  

The seemingly concrete secondary-listing options of the Shenzhen-headquartered firm – which operates China’s QQ Music, Kugou, and Kuwo streaming solutions as well as the WeSing karaoke app – came to light-weight in a current report from Bloomberg. At the time of this composing, nevertheless, Tencent New music execs hadn’t commented publicly on the subject matter, and the exact timing of the rumored listing continues to be unclear.

In any function, Tencent Music (which noted a 25 percent 12 months-in excess of-calendar year bounce in paid subscribers in the course of Q2 2022) could kick off relevant “marketing activities” someday all through “the coming times,” in accordance to the report. Additionally, TME’s Hong Kong stock current market debut will reportedly be executed “by introduction,” indicating that the company will not be issuing new shares or elevating contemporary money.

In the course of today’s trading several hours, Tencent Music’s by now-shown shares enhanced a little from yesterday’s close, finishing at $4.78 apiece. Even though the figure reflects a 33.52 % improve throughout the past six months, it furthermore represents a more than 30 per cent falloff from 2022’s beginning and an over 40 percent drop because mid-September of 2021.

Of study course, a amount of tech-sector shares – and specifically shares in subscription-based mostly amusement solutions – have experienced substance rate decreases on the year. Spotify stock (NYSE: Place) ended today’s trading at $102.45 for each share (down 58.04 percent from 2022’s get started), for instance, in opposition to $224.12 for each share for Netflix inventory (NASDAQ: NFLX), which has slipped by 62.48 % in the course of the earlier nine and one particular-50 percent months.

And needless to say, observers have for yrs expressed problems that Tencent Tunes (and an array of other China-based companies) could be delisted from its stateside exchange because of to broader geopolitical developments. Last thirty day period, 5 condition-owned Chinese organizations revealed that they would voluntarily delist from the New York Stock Trade as they faced scrutiny from regulators.

Ought to the Hong Kong listing move forward, Tencent Music would be signing up for the likes of NetEase’s Cloud Village, which contains the Cloud Songs streaming company.

Cloud Village made shares readily available to the general public in December, right after Sony Audio Amusement (SME) took a $100 million stake. More not too long ago, TikTok guardian ByteDance – which released a streaming service in China five months back again and may well be making ready to roll out a U.S. counterpart – reportedly shelved its possess IPO programs. Nevertheless, this wasn’t the initial time that the controversial entity experienced made the decision towards pursuing a listing on the public industry.

Kenneth Proto

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