Tencent Music Entertainment Group, the online-music arm of the Chinese social media firm is planning an early IPO. Apparently, the company is planning to start taking orders from investors on the 4th of December.
As per the latest reports, the company is planning to start trading from December 12. However, as with all Chinese firms offering IPOs on American stock markets, nothing is fixed as of now and market conditions will be the deciding factor that could see the offering postponed.
Chinese companies have already generated around $8 Billion from first time sales of stocks on the US markets. If all goes well, Tencent Music could push this number to the neighborhood of $10 Billion. Up until now this year, the largest IPO from a Chinese firm has come from iQiyi, which raised $2.4 Billion in March. While I am not sure Tencent Music will pull in quite that much dough, the brand is recognized even in the US, so we never know.
At present, the company has listed its IPO size as a more modest $1 Billion, in a filling with the US SEC. However, the amount is subject to, and very likely to, change. Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley have been roped in to oversee the transaction.