Hong Kong, China: Tencent Music Entertainment (TME) Group, the Chinese music streaming giant launched a secondary listing in Hong Kong in an initial public offering, suggesting that the company did not raise new funds or issue new shares.
The Company’s American Depositary Shares (ADS), each representing two shares, are primarily listed and traded on the New York Stock Exchange. Shares listed on the Main Board of the Stock Exchange of Hong Kong (SEHK) are fully fungible into ADSs listed on the New York Stock Exchange (NYSE).
TME confirmed last week that it is preparing to launch a secondary listing in Hong Kong as an introduction. TME’s listing in Hong Kong comes nearly four years after the company began trading on the New York Stock Exchange.
Tencent Music reported that one U.S. listed share represented two of its Hong Kong shares. TME’s US stock closed at $4.58 on 20 September in New York.
We are proud to celebrate our successful listing on the Main Board of The Stock Exchange of Hong Kong. We are truly grateful to our users for being part of our ecosystem and our journey, our employees for being our greatest asset, our partners and investors for their trust in us, and all those who have supported us in making this achievement possible. Going forward, we will continue to expand the frontier of music entertainment, elevating its role in people’s lives and shaping the future of China’s digital music industry while sharing our success with all of our stakeholders.
Mr. Cussion Pang, Executive Chairman of TME remarked.
The company became the latest in a string of US listed Chinese companies to opt for a second listing in Hong Kong to avoid the threat of delisting in New York due to a bilateral dispute between Washington and Beijing over access to auditing papers.
The two sides recently reached an agreement to end the decade-old standoff, and US officials have come to Hong Kong to review US-listed Chinese companies.