The shares of Tencent Music Entertainment Group have spiked by 10% on the first day of the New York public trade. It is a music streaming giant of China that has risen over $1.1 billion or £870 million with a listing price of $13. It is a part of Tencent Holdings, the Chinese tech company. Tencent Music owns a handful of most popular apps in the country that also include Kugou Music, QQ Music, and WeSing, the karaoke service. The launch was hindered by the latest downturn in the US financial markets and trade war between the US and China.
The shares called it a day at $14, which is around 8% higher, giving the company a market value of $23 billion. The apps owned by Tencent Music have 800 million monthly users, among which 35 million users enjoy the service on paid basis. The executives of the firm had expected the company to reach the valuation of $30 billion when it was starting to pursue the listing of NYSE or New York Stock Exchange in early 2018. However, the listing got delayed that compelled the firm to constrict the selling price of the 82 million shares from $15 to $13.
Tencent stated that it has plans to utilize the money in elaborating the music catalogue, marketing the company, developing new services, and financing the probable investments.
The Cayman Island incorporated company is supported by the investors that not only include Sony Music Entertainment but also Spotify and Warner Music Group. However, the major portion of the shares belongs to Tencent Holdings which includes digital payments, advertising, cloud services, online games, and WeChat messenger service. The company was founded in 1988 and got a position on the Hong Kong Stock Exchange in 2004. The company became Tencent Music Entertainment Group after merging with China Music Corporation in 2016.