The Chinese music streaming company Tencent Music Entertainment Group (NYSE: TME) began trading on the New York Stock Exchange on Wednesday.
Tencent has become the largest online music entertainment platform in China. The service caters to over 800 million monthly active users averaging over 70 minutes per day, according to the company’s F-1 filing with the Securities and Exchange Commission.
Total revenue for the first half of 2018 totalled $8.6 billion, amounting to a year-over-year growth of 92.2 percent. This growth is largely driven by the increase in both international and domestic music labels, of which there are now more than 200.
The company offered 82 million shares at a price of $13. By the end of its Wednesday debut, the stock closed, up 9.2 percent at $14.19 per share. The company reported an implied valuation of $21.3 billion following the IPO.
Tencent Music was formed in mid-2016 after Tencent Holdings bought a controlling stake in China Music Corp. The Tencent Music IPO prospectus says it’s the largest online music entertainment platform in China. It operates the top four music mobile apps in terms of mobile monthly active users. It then combined that with Tencent’s streaming business. Tencent Music owns streaming apps QQ Music, Kugou and Kuwo as well as karaoke app WeSing.
For the nine months ended Sept. 30, Tencent Music reported a revenue of about $1.98 billion. That was up 84% from the year-ago period, in local currency, with a profit of $394 million.
Poised as one of the largest IPOs by a Chinese company in the U.S. this year, Tencent Music follows the $2.4 billion raised by video streaming company iQiyi (IQ) with an IPO in March, and the $1.6 billion garnered by online group discounter Pinduoduo (PDD) in July.