In brief: Tencent’s music-streaming arm files for $1b IPO

Tencent Music Entertainment Group, the online-music arm of China’s largest social-media company, filed for a initial public offering in a continuing surge of US listings by Chinese companies.

The music-streaming site listed its offering size as US$1 billion in a filing Tuesday with the US Securities and Exchange Commission. The amount is likely a placeholder and may change.

Tencent Music is preparing to sell shares after its parent company reported its first profit drop in at least a decade while also grappling with new game-approval restrictions imposed by Chinese regulators.

Source: Bloomberg

Here’s how Tencent Music is shaping up so far:

• Earned US$263 million profit in H1 2018 on US$1.3 billion total revenue
• Has 872 million monthly active users in Q2 2018, up from 806 million last year
• Users spend an average of more than 70 minutes daily on its platforms
• Only 3.6 percent of users pay for music, while 4.2 percent pay for for social and entertainment services