NEW YORK -- Tencent Music Entertainment Group has decided to postpone plans for an American initial public offering until November or later over global market turmoil, according to media reports Thursday.
The music-streaming unit of Chinese internet group Tencent Holdings had filed IPO documents on Oct. 2 and had reportedly sought to raise a placeholder amount of $1 billion. The listing would have given a needed boost to the parent, whose share price has dropped for 10 consecutive trading days in Hong Kong to decline by more than a third so far this year.
Tencent Music worried that market turmoil would affect the pricing, The Wall Street Journal reported, citing people familiar with the offering. The Dow Jones Industrial Average sank more than 500 points on Thursday, after plunging about 831 points the day before.
The company had been expected to start its roadshow to sell the shares to investors next week and begin trading the week of Oct. 22, according to the Journal. Going public would make Tencent Music the first listed Chinese music-streaming business in the U.S.
Stock market troubles at home have already sent a number Chinese companies heading to the U.S. for IPOs this year. Beijing has also been cracking down on pirated music, and Tencent Music and competitors will likely need to come up with money to license rights.