Tencent Music Entertainment, the music streaming arm of Tencent (0700), is poised for a secondary listing in Hong Kong to raise about US$2 billion, IFR reported.

The company raised US$1.1 billion (HK$8.58 billion) through an initial public offering on the New York Stock Exchange in December 2018. It is possible it will be the first company with the corporate weighted voting rights structure to sell shares in Hong Kong, the report said.

Hong Kong Exchanges and Clearing (0388) introduced new arrangements to allow issuers with corporate WVR to seek dual listings in Hong Kong last October.

Founded in 2016, Tencent Music runs four major online music platforms in China: QQ Music, Kugou Music, Kuwo Music and WeSing.

In the third quarter, Tencent Music's online music paying users rose 46 percent year-on-year to 51.7 million. Net profit grew by 9.7 percent to 1.13 billion yuan (HK$1.35 billion). Third-quarter revenue rose 16.4 percent to 7.58 billion yuan with online music subscription revenues jumping 55 percent year-on-year to 1.46 billion yuan.

In December, a Tencent-led consortium said it will raise an additional 10 percent of Universal Music Group in a deal that values the world's biggest music company at 30 billion euros (HK$282.9 billion). The purchase will bring Tencent's holding in the music group to 20 percent.

Meanwhile, four firms start trading on the main board today. Singapore logistics firm Legion Consortium (2129) was the best performer in the gray market last night, up more than 25 percent.

Tencent Music Entertainment made its debut on the New York Stock Exchange on December 12, 2018. AP

Tencent Music set for US$2b secondary listing