After Spotify, Another Music Giant is Preparing for IPO in US Stock Exchange In an announcement at Hong Kong stock exchange, the Chinese internet giant Tencent said the terms of the proposed spin-off, including offering size, price range and other details are yet to be finalized

By Komal Nathani

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.

Shutterstock

After the successful Initial Public Offering (IPO) of global music giant Spotify, now the Chinese internet giant Tencent is planning to make its entry in the US stock exchange. With its majority-owned brand, Tencent Music Entertainment, the Chinese giant made an announcement of going public in the Hong Kong stock exchange on Monday.

In a statement issued on Sunday through the HK stock exchange, Tencent said the terms of the proposed spin-off, including offering size, price range and other details are yet to be finalized. The company added that details will be made "as and when appropriate."

The global internet giant provides services in music, social networking, e-commerce, mobile games, booking services and smartphones. While Spotify had debuted in US stock exchange in April, Tencent's announcement for IPO in the US market envisions an interesting battle between the two music streaming giants.

Is this a Good Sign for Music Streaming Market?

With two global giants going for IPO can be predicted as a good sign for the music streaming market despite the battles of piracy and other legal issues faced by the companies. With the increasing smartphone penetration, and more and more listeners opting for music apps, the music streaming market is growing at a remarkable pace.

According to the calculations by Thomson Reuters publication IFR, Spotify owns about 9 per cent in Tencent Music, whereas Chinese giant, Tencent owns 7 per cent in global music giant Spotify. As per reports, Tencent Music will offer worth up to USD 4 billion to public.

According to the Thomson Reuters report, US listing may be a blow to Hong Kong's ambitions of getting all the tech companies on the city's bourse, but it still has many restrictions in terms of corporate entities to take benefit from weighted voting rights.

A few days before Chinese smartphone maker, Xiaomi also debuted on Hong Kong stock exchange and raised USD 4.72 billion in its IPO. But the recent drop on its first day of trading to 6 per cent marked a flop move by the company.

According to reports, the slump in the prices were caused by an escalating trade was between China and US.

Komal Nathani

Former Correspondent, Entrepreneur Asia Pacific

A firm believer of hard work and patience. Love to cover stories that hold a potential to change the momentum of business world. Currently, a part of all-women web team of Entrepreneur’s Asia Pacific edition to jig the wheel of business journalism!

Business Solutions

Windows 11 Pro for $20: Built for Business Owners Who Do It All

A one-time payment gives you lifetime access to the tools you need to secure data, streamline workflows, and scale your business.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Starting a Business

'Don't Wait Until Everything Is Just Right': How a Common Frustration Inspired This Entrepreneur to Co-Found a Thriving Business

Mike Mayer, co-founder and co-CEO of Windmill, shares how an annoying struggle with an air conditioning unit sparked the idea for an innovative air quality company.

Money & Finance

Startup Founders Need to Advocate For Their Own Compensation — Here's How to Do It Right

Ensuring fair compensation as a founder or CEO is crucial to staying motivated and building a successful company. Here's how to strategically handle the conversation and get the pay that reflects your worth.

Side Hustle

After This 26-Year-Old Got Hooked on ChatGPT, He Built a 'Simple' Side Hustle Around the Bot That Brings In $4,000 a Month

Dhanvin Siriam wanted to build something that made revenue from ChatGPT, and once he did, he says, "It just caught on."

Franchise

From Powerhouses Like Jersey Mike's and Taco Bell to Icons Like Pizza Hut, These are the Top Fast-Food Franchises in 2025

Discover the 10 most successful QSR franchises of 2025, based on Entrepreneur's Franchise 500 ranking.