4 January, 2019
Duff & Phelps congratulates online music streaming service Tencent Music Entertainment Group (NYSE: TME) (Tencent Music) on its initial public offering (IPO) on the New York Stock Exchange on December 12. Duff & Phelps was engaged as a professional independent valuer for Tencent Music’s IPO with respect to the valuation of the employee share incentive plan, share based payment and purchase accounting for acquired entities including China Music Corp. for financial reporting purpose.
A spinoff of China tech conglomerate Tencent Holdings Limited (HKSE: 0700/OTCMKTS: TCEHY), Tencent Music represents a sprawling ecosystem that incorporates the popular karaoke WeSing app and three music streaming apps: QQ Music, Kugou Music and Kuwo Music.
The IPO allows Western investors to buy in at an opportune time for Chinese tech startups. Tencent Music hopes to capitalize on China’s runaway smartphone penetration rate of 55.8 percent, or 772 million active users as of December 2017.
