Tencent Holdings Ltd. is in discussions to purchase a stake in Warner Music Group as a part of the report firm’s preliminary public providing, a key take a look at for a new-issue market that has been hobbled by the coronavirus pandemic.
The Chinese language web large is discussing an investment of $200 million forward of an IPO that’s slated for subsequent week, based on folks acquainted with the matter.
Warner Music can be working to line up establishments that, together with Tencent, would function anchor traders contributing a complete of greater than $1 billion towards a fundraising purpose of as a lot as $1.Eight billion, the folks stated. The providing is predicted to worth Warner Music at $11.7 billion to $13.Three billion and is about to start buying and selling June 3.
That may make it the largest IPO of 2020, based on information from Dealogic. It is going to additionally function a sign to different corporations searching for to go public of whether or not it’s secure to take action after the pandemic introduced IPOs to a digital standstill.