China-based music streaming company Tencent Music Entertainment Group said it raised nearly $1.1 billion in its U.S. initial public offering, according to Reuters. Earlier this year, the company was expected to be valued at as much as $30 billion and raise $4 billion for its IPO, but those estimates were slashed in September.
The IPO values Tencent Music at $21.3 billion, initial trading saw shares rise over 10% to around $14.23. Tencent Music’s U.S. IPO is the fourth largest among Chinese firms this year, according to deal value.
Tencent announced the spinoff in early July. According to Reuters, it filed a confidential updated prospectus with the U.S. Securities and Exchange Commission on Sept 7.
Tencent Music counts over 700 million monthly users, of which about 15 million may be paying subscribers. It operates a variety of apps allowing users to stream music, watch live performances and play karaoke, as well as a close connection to Tencent’s WeChat messaging platform, which has more than 1 billion users.
In its current form, Tencent Music was established in 2016 after a merger with streaming rival China Music. Since then it has cemented its leadership position by adding to and renewing deals with international studio groups Universal Music, Warner Music and Sony Music. It also has deals with China’s Huayi Brothers Music and Korea’s YG Entertainment.