China’s media giant are looking over the water for a public offering of their music company Tencent Music Entertainment in the US.

Tencent have revealed their plans to put their music service Tencent Music Entertainment (TME) on the US stock exchange. The company runs the biggest music services in all of China but are looking elsewhere for trading their company’s stocks, saying to investors they will float on “a recognised stock exchange in the United States through a registered public offering”.

Tencent Music, who own massive Chinese music services like QQ Music, Kuwo, and Kugou, have submitted their proposal to the Hong Kong Stock Exchange who have accepted the Chinese company’s entry onto the US Stock Exchange. A Chinese news report last week wrote that TME expect to earn a public valuation of around $30 billion following their Initial Public Offering (IPO) in the US.

Following Spotify’s recent IPO Tencent Music Entertainment expressed interest in going public. The two music services then invested in each other shortly after, before Tencent revealed their plans for an IPO in the US. China is one of the quickest growing markets for music as Asia catches up to the streaming revolution of recent years happening in the West, led by streaming giants like Spotify and Apple Music.

Their spin-off proposal reads:

The board of directors (the “Board”) of Tencent Holdings Limited (the “Company”)
is pleased to announce that the Company has submitted a proposal to The Stock
Exchange of Hong Kong Limited (the “Stock Exchange”) pursuant to PN15 in
relation to the proposed spin-off by way of a separate listing of its online music
entertainment business operated by its majority-owned subsidiary, Tencent Music
Entertainment Group (“Tencent Music”), a leading online music entertainment
platform in China, on a recognized stock exchange in the United States through a
registered public offering (the “Proposed Spin-off”), and that the Stock Exchange
has confirmed that the Company may proceed with the Proposed Spin-off.

The terms of the Proposed Spin-off, including offering size, price range and assured
entitlement of Tencent Music securities for shareholders of the Company, have not
yet been finalized. Further announcement(s) will be made by the Company in relation
to the Proposed Spin-off as and when appropriate.

The Proposed Spin-off is subject to, among other things, the obtaining of
approval(s) from the relevant authorities in respect of the listing of, and
permission to deal in, securities of Tencent Music, and the final decisions of the
Board of the Company and the board of directors of Tencent Music.

Shareholders and potential investors of the Company should be aware that there
is no assurance that the Proposed Spin-off will take place or as to when it may
take place. Shareholders and potential investors of the Company should
therefore exercise caution when dealing in or investing in the securities of the
Company.