One of the largest IPOs in the United States in recent years is boosting its shares by 7.7% more in the company’s commercial debut.
A positive first day was welcomed by the Chinese music transmission company, marketed with the symbol TME, after having delayed its initial public offering several months due to the recent market volatility and then having a price at the lowest level of its market expected range.
“We are very proud to be able to make it public despite the challenging market,” Tencent Music’s director of strategy, Tony Yip, said in an interview on the New York Stock Exchange.
US depositary shares
The company’s US depositary shares closed at $ 14 each, above its $ 13 IPO price. To Tencent Music executives rang a bell with wooden hammers on the floor of the New York Stock Exchange.
Performance for Tencent Music investors relations were driven by an increase in stocks in general. The high-tech NASDAQ compound ended the day with a 1% increase, and the S & P 500 index rose 0.5%.
Tencent Music’s IPO
Tencent Music’s IPO is probably the last big debut in what has been an exceptional year for initial public offerings. 2018 has seen the highest amount of IPOs and the highest amount of money collected in total during the IPO since 2014. So far, 227 companies have raised $ 60.4 billion in US exchanges.
Companies that have become public in the US this year they are negotiating an increase of 5.3% on average from their IPO price, and technology companies increased 6.3% on average, according to Dialogic data. In comparison, this year the NASDAQ has risen by 2.8% and the S & P 500 has fallen by 0.8%.
Still, Tencent Music investor relations financial results and bankers expect next year to be even busier than in 2018 with several giant companies that plan OPI, including Uber Technologies Inc., Lyft Inc. and Slack Technologies Inc., The Wall Street Journal reported.
When Tencent Music sold shares in the IPO, investors valued the company at $ 21.3 billion, making it one of the largest traditional IPOs by market value in the US.
It went public in 2014 to $ 169.4 billion. Tencent Music generated approximately $ 533 million in revenue from the IPO. Including the profits reaped by the selling shareholders, the IPO took approximately 1,100 million dollars.
Tencent Music Apps
Tencent music was created by combining China music Corp, with Tencent Holdings’ broadcast business in 2016. Tencent Music operates several popular applications, such as QQ Music and an online karaoke platform. Since Tencent Music made public its IPO plans, stocks around the world have skyrocketed. At the heart of the volatility are concerns about the tensions related to trade between the United States and China and the slowdown in economic growth in China.
Tencent Music executives in an interview said that while the macro environment has not been ideal, the music transmission industry is better positioned than many to cope with an economic slowdown and the deterioration of commercial relations between the US and China.
