Tencent spikes on music arm move

Business | Janice Huang 2 Nov 2017

Chinese internet giant Tencent Holdings' (0700) share price hit a record high yesterday, buoyed by reports about its plan to spin off its music arm and have it listed in Hong Kong or New York next year to raise at least US$1 billion (HK$7.8 billion), as well as the to-be- listed China Literature.

Tencent Music Entertainment Group, comprised of QQ Music, Kugou and Kuwo apps, has started preparing for an IPO after China Literature's seeking a HK$8.58 billion public offering in the city. Tencent yesterday closed 2.92 percent higher at HK$360.

Tencent Music, which provides free streaming services, has 700 million monthly active users.

However, only about 2.5 percent of its monthly active users, or 17.5 million, are paying customers.

Meanwhile, China Literature, which has reportedly frozen HK$520 billion worth of investors' subscription is tipped to price its IPO at HK$55 per share, at the top of its HK$48 to HK$55 indicative price range.

Incentives await investors to the upcoming IPO of Razer, tipped to make its debut on November 13. Five brokerage houses have reportedly prepared HK$17 billion for margin financing of investors who will buy Razer shares.

Dah Sing Bank said it will waive service charges on clients who will subscribe to Razer shares through the bank.

Bank of China (Hong Kong) said customers who subscribe to Razer shares via the lender will enjoy a concessionary annual interest rate of as low as 1.2 percent.

In other IPO action, Sun Hing Printing Holdings opens retail book today. It plans to issue 120 million shares at an indicative price from HK$1.05 to HK$1.45 per share.

SJM Holdings (0880) executive director Angela Leong On Kei, the "fourth wife" of Macau casino tycoon Stanley Lo Hung-sun, is said to be among Sun Hing's cornerstone investors.

The company also got support from local singer and actor Nicholas Tse Ting-fung. Sun Hing chief executive Kenneth Chan Chi-kin said the firm cooperated with Tse in the past and it will continue the partnership.

American luxury fashion house Coach said it had applied to delist from the Hong Kong market.

It came just a day after Swiss commodities trader and miner Glencore announced plans to withdraw its listing from the city.

Search Archive

Advanced Search
May 2020

Today's Standard

Yearly Magazine

Yearly Magazine