Start the music! Start the music! Start the music!

Start the music!

Jane Fu

Singapore Sales Trader

Summary:  Tencent Music is going to be listed on the New York Stock Exchange on December 12. With strong financial numbers and a viable business model in an ever-growing industry, we believe the IPO will provide some good opportunities.

Throughout the year, we have shared updates on a variety of interesting IPO stocks. Some of them did very well after they were listed; some did not. If there is one IPO we think you should not miss out on before year-end, however, it’s Tencent Music, which will be listed on the New York Exchange on December 12. The IPO is looking to raise $1.2 billion by issuing 82 million American Depositary Receipts in a $13-15/share range.

As the name suggests, Tencent Music is the music arm of Tencent, the largest Chinese technology company. The company was founded in July 2016 after Tencent purchased China Music Corporation. In a distinct contrast to most technology IPO stocks, Tencent Music is already a profitable business – one of the first in the online music industry among global providers!

For the benefit of clients who may not familiar with the company, you can think of it as Spotify+Facebook+Youtube. As the largest “one-stop” music entertainment platform, Tencent Music owns QQ music, Kugou music, Kuwo music, 5sing et cetera and provides services such as a music store, music social networking, and music cloud storage. It also provides a channel for digital album sales, livestreaming concerts and even O2O performances. No matter whether you are a music producer, music listener or karaoke singer, you will find the service you need from Tencent music. Tencent music has won exclusive licensing agreements from Sony Music, Warner and Universal Music – the three major music companies in the regional market. It also has the most extensive copyright cooperation network in China, covering over 90% of domestic music licenses.

As of June 2018, Tencent Music had more than 20 million copyrighted songs in its library, more than three times the stockpile of its immediate competitor. In terms of active users, Tencent Music undoubtedly holds the top spot with more than 800 million unique monthly active users and a decent number of paid users who spend more than 70 minutes daily in the company’s apps.

According to iResearch, the production value of China’s digital music hit 52.9 billion yuan in 2016. It was traditionally believed that China’s music industry is all about free and pirated music. After many years of transformation, however, China’s digital music industry has officially come to the point where copyright is respected and standardised. Therefore, the growth in digital music revenue will be significant due to payment from users, ads, livestreaming, sales of related merchandise and similar. It is projected that by 2020, the total paid digital music revenue will reach 8,354 million RMB.


The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Trading in financial instruments carries risk, and may not be suitable for you. Past performance is not indicative of future performance. Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.