China’s streaming giant Tencent have once again delayed their plans to go public making it likely that we won’t see their IPO this year.
Tencent Music Entertainment (TME) are China’s dominating streaming service with over 800 million users. The streaming giant made their plans clear earlier this year to expand with an upcoming Initial Public Offering (IPO) on the US stock market, following Spotify’s lucrative entry onto the New York Stock Exchange. After delaying their plans to early November already it seems that they may not go public this year at all.
Their highly anticipated $2 billion IPO was initially planned for October but the company delayed it, stating that they would wait for global stock markets to stabilise first. According to two sources involved, reported by Reuters, TME are now discussing pushing their IPO – the last major one of the year in the US – back to 2019. The company hasn’t made a final decision yet as it analyses uncertain markets and weak technology stocks.
One source reportedly said: “Of course they want to get the deal done within the year, but meanwhile they don’t want to rush for the listing. What they care about a lot is (getting) the right valuation, rather than the fast pace of the listing.” Another simply said: “We continue to monitor.”
The New York Stock Exchange is typically slower in December and with only 9 days left until the last month of 2018 it’s looking increasingly unlikely that the IPO will take place this year. TME have declined to comment officially.