Tencent Music delays $2 billion US IPO due to market tumult

China’s largest music-streaming company, Tencent Music Entertainment Group decided to push back its initial public offering several weeks and wait out turmoil in stock markets, which could hurt its pricing.

The music arm of Chinese tech giant Tencent was expected to kick off its roadshow to sell shares to investors next week and was expected to start trading the week of October 22.

“The music-streaming company met with its underwriting team this week to discuss the price range Tencent Music would set for its hotly anticipated IPO, but they opted to wait several weeks over worries that the market turmoil would affect the pricing,” reported The Wall Street Journal.

The company recently cut its plan to raise $4 billion by half, and is now seeking $2 billion. This large IPO comes close on the back of Shanghai-based electric-vehicle maker NIO Limited‘s (NYSE:NIO) IPO which raised $1 billion by selling 160mln American depositary shares last month.

READ: Chinese company Tencent Music files for US IPO as Sony and Warner Music snap up $200M in shares

Twenty-three Chinese companies went public in the US during the first three quarters of this year, on pace for the busiest year since 2010, according to Connecticut-based IPO advisor Renaissance Capital.

Ten of the IPOs took place in the third quarter alone, with companies pushing to complete public offerings despite increased trade tensions between the US and China, according to Renaissance.

Contact Uttara Choudhury at [email protected]

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Story by ProactiveInvestors