NEW YORK (CelebrityAccess) — China-based music streaming company Tencent Music Entertainment Group revealed that it raised nearly $1.1 billion in its debut on U.S. stock exchanges.
American depository shares of Tencent Music debuted at $14 on Wednesday, on the low end of the $13-$15 dollar range for the IPO. The company’s share price stayed close to its opening point, trading in a range of $13.75 to $14.75 over the course of the day.
At the close of trading on Wednesday, Tencent Music’s market value was $18.65 billion, according to FactSet and at the close of trading on Thursday, TME was up slightly, closing at $13.56.
The company’s post IPO valuation is significantly less than earlier estimates this year, which said the company was expected to be worth as much as $30 billion and raise $4 billion from their initial public offering.
While far from a splashy debut the IPO is still likely seen as a success by the company after postponing it in the face of market turmoil in October. It’s also the 4th largest IPO for a Chinese company in 2018.
Tencent Music was launched in 2016 following a merger with rival streamer China Music. The company has become a market leader in China and established licensing deals with major labels such as Universal Music, Warner Music, and Sony Music, as well as regionally important brands such as Huayi Brothers Music and the Korean label YG Entertainment.