Chinese tech titan Tencent raised more than a billion dollars in an IPO for its music streaming platform. Tencent Music is China's biggest online music service with more than 800 million active monthly users. The shares were priced at $13, that's on the low end of the estimate. The listing put the firm's value at more than $21 billion.
Less than the Tencent spin off we're aiming for but still a figure that makes the listing of the biggest since Alibaba's massive IPO in 2014. The company starts trading on the New York Stock Exchange Wednesday. And as Reuters' Julia Fioretti explains, coming in low isn't necessarily a bad signal.
>> Tencent is China's Spotify and it's the country's largest online music streaming app. It's not necessarily a bad sign that it came in at the bottom of the price range. One needn't read too much into a single deal when markets are volatile and markets are very jockey. And so many companies are about to come back with their fund raising targets and evaluation targets.
So it's definitely a sign that Tencent music has been affected by the volatility. And it might have been what they were trying to get more along any investor who would have wanted to the cheaper price.>> The listings the fourth largest by a Chinese company in the US.
This year. Tencent Music initially planned the IPO for October, but after a sell off on global markets, the launch was postponed for two months.>> Tencent Music IPO also shows that the timing is very difficult. They were initially going to launch in October. They then postpone that after the sharp market sell off.
So it's become very hard to catch that market window when markets are up and down so much. And it does mean that investors now is buyers market, so investors can demand lower prices and issue is if they want to get a deal done, they'll just have to cut the deal size.
>> When Tencent Music's frequently compared to Spotify. It boast a number of social focused apps including one for Karaoke. And those have hoped that Tencent Music profitable. Where Spotify is not