TENCENT MUSIC REDUCES IPO TARGET

Tencent Music Entertainment, China’s biggest streamery, with a massive user base, is looking to raise about $2 billion in a U.S. IPO, roughly half of the up to $4b that parent company Tencent Holdings had initially been targeting, three people close to the deal told Reuters.

TME filed confidentially with the SEC on 9/7, following Tencent’s big reveal on 8/26.

TME was believed to be seeking a valuation of about $25b, Reuters had originally reported. The sources didn’t disclose whether the now-smaller deal related to a lower valuation or fewer shares to be sold.

Tencent said in a statement that the Reuters report was not accurate without further elaboration. Translated from Chinese, the statement read, “Please refer to official statements or announcements by the company for facts relating to the proposed offering.”

Rival Chinese streaming company iQiyi floated a $2.42b IPO in March in the biggest U.S. offering from a Chinese company to date.