The Strategist

Tencent Music defines price of papers before IPO

12/12/2018 - 09:15

The Chinese company has priced its own shares at the bottom of the pre-range.

gaobo via flickr
gaobo via flickr
Tencent Music, the largest music streaming service in China, conducted pricing of its papers for an IPO, evaluating them at the lower end of the preliminary range. As a result, the price was $ 13 per one.

The initial placement of the company will be held on the NYSE from December 12 to December 14. Tencent plans to place 82 million American Depositary Receipts (ADRs) for two Class A ordinary shares at a price of $ 13 per one paper. Pre-price range ranged from $ 13 to $ 15 per receipt. The company intends to attract approximately $ 1.1 billion through the placement. The total cost of Tencent is expected to reach $ 21.3 billion.

At first, the initial placement was scheduled for October. But then the company postponed the IPO, deciding to wait for stabilization of global stock markets. At the same time, according to Reuters, the company is interested in holding the placement this year, as it worries that tensions in trade between the United States and China will escalate, and not because the company is in dire need of funds.