Oct 12, 2018 (China Knowledge) - Tencent Music Entertainment Group will be delaying their initial public offering (IPO) amid a downturn in global equity market with a sell-off led by technology shares this week. The news of IPO being postponed was first reported by The Wall Street Journal.
Tencent Music is the brainchild of technology giant, Tencent Holding Ltd <700:HK>. Tencent Music is the operator of music streaming and download services with application including QQ Music, Kugou, and Kuowo. Their applications and music platform have attracted 800 million active users monthly, with an average 70 minutes spent on it per day.
The company has worked with over 200 international and domestic music labels, generating a revenue of RMB 8.6 billion in the first half of 2018. This signified a 92.2% year-on-year growth in company revenue.
Plans of IPO roadshow was slated to begin on Monday, with the listing forecasted to be held on the 22nd October. However, the slump in global equity market made the company reconsider the timeline of said IPO.
Tencent has been badly affected by the stricter regulations in the gaming industry. Shares price of the company has fallen to 52 weeks lowest, closing at HKD 293.80 apiece, earlier this week.
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