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The logos of QQ Music, Kugou in addition to also Kuwo are seen on the screen of an iPhone on June 12, 2018 in Paris, France. QQ Music, Kugou in addition to also Kuwo are the three streaming Chinese music services owned by Tencent.
Tencent Music Entertainment Group will postpone its highly anticipated initial public offering because of the recent sell-off, The Wall Street Journal reported Thursday citing people familiar with the deal.
The Journal reported which the company met with its underwriters which week, although sources said Tencent Music ultimately decided to push its debut back amid concerns which the sell-off would certainly affect its pricing.
Stocks fell sharply Thursday with the Dow Jones Industrial Average closing more than 500 points lower, bringing its two-day losses to more than 1,300 points. Investors dumped equities around the globe amid concerns about rapidly rising interest rates, a possible global economic slowdown in addition to also overly ambitious tech valuations. The Nasdaq on Thursday became the first major benchmark to fall into correction territory.
Sources told the Journal which Tencent Music was originally set to kick off its roadshow next week in addition to also begin trading the following week. The Journal reported which the division today plans to wait until November.
The music arm of Chinese tech giant Tencent owns the four largest music apps in China in addition to also counts industry competitor Spotify as a backer. According to a prospectus filed earlier which month, Tencent Music plans on raising as much as $1 billion in what could be the largest U.S. IPO by a Chinese company since Alibaba raised over $20 billion in 2014.
Parent company Tencent owns 58 percent of the music division, while recently public Spotify owns 9 percent of shares.
Tencent did not immediately respond to CNBC’s request for comment.
Read the full report inside the Wall Street Journal.
— CNBC’s Sara Salinas, Fred Imbert in addition to also Michael Sheetz contributed to which report.