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Tencent Music and Entertainment hires three US banks as it readies for IPO

Tencent Music and Entertainment readies for US IPO

Tencent Music and Entertainment (TME) has appointed Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch to lead its highly anticipated IPO, according to The Financial Times.

The much-anticipated IPO, which media reports estimate will value the TME at more than $30bn, will see the music division of digital giant Tencent list in New York.

TME is China’s largest music-streaming company and was established after merging with CMC in 2016.

It also owns minority shares in Spotify following a stake swap deal late last year. The Spotify deal is believed to be a key factor in the company’s valuation.

The IPO is the latest in a string of public offerings by Chinese companies, already this year entertainment giant iQiyi and video streaming site Bilibili have both listed in the US.

Chinese technology giant Xiaomi is also preparing for its $10m IPO in Hong Kong next month. The company, which is currently the fourth-largest smartphone maker, is aiming for a $70 million valuation.

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