Kuke Music Holding Ltd. (NYSE: KUKE) debuted in a $50 million initial public offering on Wall Street Tuesday in the first Chinese listing of 2021 and is in the green as of midday.
China's largest provider of classical music licensing services peaked at $15.06 per share in early trading and went as low as $10.49 per share as of early afternoon Tuesday.
The company priced at $10 per share, the lower end of the expected $10 to $12 range, and sold 5 million American depositary shares. Its market value at pricing was $308 million.
The underwriters have an option to purchase up to 750,000 additional ADSs upon the offering. Underwriters are Deutsche Bank Securities Inc., US Tiger Securities Inc., AMTD Global Markets Ltd., China Securities (International) Corporate Finance Co. Ltd., and Valuable Capital Ltd.
The company said in its prospectus that a number of institutional investors, among which is CITIC Capital, have indicated interest in acquiring up to an aggregate $26 million of Kuke’s ADSs in the IPO.
Kuke provides licensing services to some of China’s top online music entertainment platforms, as well as music labels and publishers, film and TV production companies, airlines and smart hardware companies. Among its partners are Tencent Music Entertainment Group (NYSE: TME) and NetEase Cloud Music.
For the nine months through September 2020, Kuke posted revenue of $5 million, a decrease of 14.6% year-over-year, and a loss of $8.5 million.