NEW YORK, U.S. - Chinas largest music-streaming service, Tencent Music Entertainment Group has raised nearly $1.1 billion in its U.S. initial public offering (IPO).
The music arm of the Chinese social network and gaming giant Tencent Holdings Ltd., said in a filing with the Hong Kong stock exchange that the music streaming company raised close to $1.1 billion after pricing its shares at the bottom of a marketed range.
The company said that in its filing that it had priced its American Depositary Receipts (ADRs) at $13 per share, which was at the low end of its indicated $13 to $15 per share range.
According to the company's statement, Tencent Music sold 41 million ADRs, and its existing shareholders sold a further 40.9 million, with a total of 82 million ADRs sold.
So far this year, Tencent Musics U.S. IPO is the fourth largest among Chinese firms by deal value.
For January-September, Tencent Music reported a 244 percent profit jump to $394 million.
On Wednesday, Tencent Music will officially begin trading on the New York Stock Exchange under the symbol 'TME.'
Tencent Music added in the filing that its IPO will debut the company at a valuation of about $21.3 billion.
Vey-Sern Ling, an analyst with Bloomberg Intelligence said, "The pricing is primarily due to weak general market sentiment. The secondary reason is market skepticism about music streaming platforms, due to the poor experience with Spotify, which is below its IPO price."
In October this year, the sell-off in global markets that were roiled by a U.S.-China trade war, forced Tencent Music to postpone the launch of its IPO that was initially planned for that month.
Further, the company decided to push its bid until December, over fears of slowing global growth.