Tencent Music Entertainment Group postponed its initial public offering to at least November, suspending one of the largest U.S. IPOs of the year, due to a sell-off in the global market, people familiar with the matter said on October 12, Beijing time.
The music streaming company met with its underwriting team this week to discuss the price range Tencent set for its much-anticipated IPO, but they chose to wait more than a few weeks for fear that market turmoil would affect pricing, people familiar with the matter said.
One of the people familiar with the matter said the company was expected to start a roadshow next week to sell shares to investors and was expected to start trading on Oct. 22.
The risk is the valuation of a company that is expected to become one of the largest technology IPOs ever. According to an early dialogue with investors, Tencent Music is expected to have strong listing demand, with an estimated valuation of between $25 billion and $30 billion, according to one person familiar with the matter.
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