Tencent Music Entertainment Group, China’s biggest music streaming company, is seeking to raise about US$2 billion in a US listing, Reuters reports, citing people close to the deal.
The company, a subsidiary of Chinese tech giant Tencent Holdings (00700.HK), had earlier been seeking to raise between US$3 billion and US$4 billion, Thomson Reuters publication IFR reported.
That would have made it the biggest Chinese float in the United States so far this year, ahead of streaming company iQiyi’s US$2.42 billion initial public offering in March.
It was then seeking a valuation of about US$25 billion, according to IFR. The sources did not disclose whether the now smaller deal related to a lower valuation or fewer shares to be sold.
The company runs the music service providers QQ Music, KuGou and Kuwo, controlling three-quarters of China’s booming music streaming market.
Users can listen to both Chinese and international artists such as Justin Bieber, Ed Sheeran and Bruno Mars.
The filing was submitted confidentially to the US Securities and Exchange Commission on Sept. 7, according to two of the people close to the deal.
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