Chinese music-streaming company Tencent Music Entertainment Group nearly raised $1.1 billion in its US initial public offering (IPO) after setting its shares price at the bottom end of expectations.
The music unit of internet services giant Tencent Holdings Ltd. priced its American Depositary Receipts (ADRs) at $13 per share, below of its targeted $13 to $15 apiece range, according to a Hong Kong stock exchange filing.
Tencent Music sold 41 million ADRs, while existing shareholders sold an additional 40.9 million.
The listing gives Tencent Music a $21.3 billion valuation, making it one of the largest US listing based on market value at IPO since in e-commerce firm Alibaba Group Holding Ltd. in 2014.
The IPO also shows how companies are dealing with a bout of market volatility with flotations.
Tencent Music’s offering was able to end what seemed to be bumper year for US listings by Chinese companies on a positive note, with $7.9 billion raised before its debut.
That is the highest amount since 2014, when Alibaba’s record $25 billion IPO.