The music-streaming arm of Chinese media giant Tencent is now hoping to raise $2 billion in its upcoming New York offering, according to sources briefed on the deal, just half its original goal.
CNBC reports that Tencent Music filed confidentially with the US Securities and Exchange Commission to hold what is expected to be one of the year’s largest Chinese listings in America.
Sources said that the company, which controls around three-quarters of the Chinese music-streaming market through its various apps, had initially looked to raise $4 billion in the listing, but has since lowered estimates.
It is unclear why the deal has been downsized, and whether Tencent Music also expects to gain a smaller valuation. Under the $4 billion plan, the company was seeking a valuation of $25 billion.