Tencent Music Entertainment, the music division of Chinese social media, tech and gaming behemoth Tencent, will be officially listed on the New York Stock Exchange. The company confirmed the news in a regulatory filing on the Hong Kong Stock Exchange, where its shares are listed after reports said it would do so last week. The amount being floated is believed to be between $29 and $31 billion, which would make it as valuable as Spotify, though the company has not confirmed that.
The comparisons between Tencent Music and Spotify would go deeper after a share swap late last year, where Spotify owns 9% of Tencent Music, and Tencent owns 7.5% of Spotify.
“The terms of the proposed spin-off, including offering size, price range and assured entitlement of Tencent Music securities for shareholders of the company, have not yet been finalized,” Tencent said in the statement via Variety.
Tencent Music has 700 million subscribers, of which 15 are believed to be paying. Through various apps, they can sing karaoke, listen to music, watch live performances and more. It also has a close connection to Tencent’s incredibly popular WeChat app.
The final details on the IPO are still awaiting confirmation, but it would bring another outside major player into the U.S. market that could use one. It would also open up some Western scrutiny to a massive Chinese tech company that it can get insulated by the Chinese government.