Go Time For Tencent Music’s IPO?
After considerable speculation that Tencent would push its IPO into 2019, it now appears the Chinese music streamer is preparing to go public as early as December 12th. It also looks like Tencent will be running a traditional IPO process, using a slew of underwriting banks including Bank of America, Deutsche, Goldman Sachs., JP Morgan Chase, and Morgan Stanley. Tencent still hasn’t pegged an opening share price or market valuation. They have a placeholder value of $1B, but their real market cap is likely to be in the $15B range.
The most recent music streaming IPO was Spotify’s, who went public back in early April. Their stock opened at $132, and shot up into the $180s. Since then they’ve cooled off (yesterday’s close was $135), which suggests Wall Street had overheated the stock. It’ll be interesting to see if Tencent catches any hangover from Spotify’s experience. I guess we’ll find out shortly after December 12th.