The China-based music streaming company Tencent Music Entertainment Group has raised $1.1 billion in an initial stock offering in the U.S.
The company had hoped to raised as much as $1.23 billion through the sale of stock on the New York Stock Exchange, half of which was sold by the Tencent Music while the rest comes from existing shareholders, Billboard reported.
Tencent Holdings initially planned its IPO for October, but postponed the offering amid escalating trade tensions between the U.S. and China.
The company runs the largest online music entertainment platform in China, with of the top four mobile services, QQ Music, Kugou Music, Kuwo Music and the karaoke app WeSing. Together, these services attract 800 million users a month, who spend around 70 minutes a day listening to music.
In its prospectus, Tencent Music described China as a massive audience with a growing demand for music. The music industry had all but abandoned the market because of rampant piracy. Amid stricter enforcement of copyright laws, spending on recorded music is expected to quadruple over the next five years, Tencent said.
Tencent Music also is profitable, reporting earnings of $262 million over the first six months of the year.
According to SEC filings, rival Spotify holds a 9% stake in Tencent Music. Warner Music and Sony Music Entertainment acquired 68 million shares in the company for $200 million in October.
Reuters reports that Tencent Music’s U.S. IPO is the fourth largest among Chinese firms this year by deal value. Video streaming company iQiyi Inc leads with its $2.4 billion listing, followed by online group discounter Pinduoduo at $1.6 billion and electric vehicle maker NIO at $1.15 billion.