Introducing the New Dashboard on Repost by SoundCloud
May 30, 2022
As of this week, the Chinese technology enterprise Tencent is reportedly putting a hold on their IPO. In the beginning of October Tencent announced an exciting new deal with Warner Music and Sony Entertainment, as well as a filing for an IPO in the US market. Now Tencent Music will be postponing this action due to a recent sell-off.
Since October 3rd, US stocks have fallen a significant amount. The Dow Jones dropped 800 points on Wednesday alone and major tech companies like Spotify and Amazon are currently experiencing decline in stock value. Due to this unfortunate timing Tencent has decided to temporarily cancel their appearance in the NASDAQ and the New York Stock Exchange.
After a meeting with the underwriting team Tencent has announced that the company will wait until November to launch the IPO. Tencent believes that the current conditions of the market will negatively affect their pricing, so waiting it out until better conditions arise seems like a safe approach. Tencent has big plans within the US stock market, as they intend on raising $1-2 billion dollars in the US market. If achieved that would be the largest U.S. IPO by a Chinese company since Alibaba’s $20 million value in 2014.