The Tencent Music which was created in July 2016, is a china based company that develops music streaming services specially for Chinese markets.
The shares of Tencent Music Entertainment Group (TME.N) on Wednesday rose on their debut from United States due the fact that investors are shrugging off the volatile markets as they wish to grab a piece of the newly, fast growing music streaming industry.
Shares of the company opened at 8.5 percent above their usual initial public offering price of 13 dollars per share and were exchanging hands at 14.10 dollars per share.
This phenomenon gave Tencent a market capitalization of some $23 billion making it on par with Swedish peer Spotify Technology SA’s present valuation.
At around 3:10 pm the stocks of Tencent Music Enterprise went up to 7.5 percent at $13.98 and with the course of the time it rose as much as 13.5 percent from its initial public offering price (IPO).
The IPO of the company accumulated $1.1 billion in proceeds which is one of the biggest by any of the Chinese company in US in the current year besides the 2.4 billion dollars amassed by the video streaming company iQiyi Inc, the $1.15 billion garnered by the electric vehicle maker NIO Inc and the $1.6 billion collected by the online group discounter Pinduoduo Inc.
The company claims to have more than 800 million monthly active users and it even offers online karaoke, online music and music centric live streaming services to its users. Tencent Music proclaims that it owns a music content library which is stocked with more than 20 million tracks.
The profit of the company tripled to $394 million in the short span of the first nine months of the year.
It launched its wildly anticipated initial public offering price just a day after United States and Chinese Leaders negotiated their 90 day truce in their trade conflict last year.
Source: Reuters, Investing
