Tencent Music Heads for Hong Kong Listing

Four people familiar with the plans said Tencent Music is in talks with banks for a Hong Kong offering that could raise up to $3.5 billion.
Shirley TianJan 12,2021,23:58

Tencent Music Entertainment Group (NYSE: TME), a unit of Tencent Holdings, is actively seeking a secondary listing in Hong Kong, according to people familiar with the matter, joining a slew of Chinese technology companies like Bilibili (Nasdaq: BILI) for new funds.

According to Nikki Asia, four people familiar with the plans said Tencent Music is in talks with banks for a Hong Kong offering that could raise up to $3.5 billion.

There is no exact timeline for the offering, but it could take place as early as the second or third quarter of this year, subject to regulatory approval and market conditions, the source said.

Following the news, shares of Tencent Music rose nearly 2% today in New York.

The filing would put Tencent Music on track to join other Chinese U.S.-listed firms that have flocked to Hong Kong amid escalating trade tensions between Beijing and Washington.

Online discount retailer Vipshop Holdings (NYSE: VIPS) and livestreaming platform Joyy are also preparing for secondary listings in Hong Kong. According to Nikki Asia, Vipshop is targeting to raise up to $2.5 billion and Joyy is looking to raise just under half that amount.

A few days ago, the Chinese online entertainment giant Bilibili (Nasdaq: BILI) filed for the Hong Kong secondary listing confidentially, as reported by CNBC Tuesday, citing a source familiar with the situation move.

Last week, local news reported that Baidu (Nasdaq: BIDU) has picked Goldman Sachs and CLSA Ltd. for its planned Hong Kong secondary listing that could net at least $3.5 billion.

Companies including giants JD.com (Nasdaq: JD; HKEX: 09618) and NetEase (Nasdaq: NTES; HKEX: 9999) raised around $17 billion through their secondary offerings in the city, according to data compiled by Bloomberg.

Topics:Secondary Listing
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