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China Tencent Subsidiaries Hit the HK Market

 1 min read / 

China Literature, Tencent’s e-book subsidiary, has seen strong demand for its Hong Kong stock market IPO and has priced shares at the top of the range, raising $1.1bn out of a total market capitalisation of $6.6bn ahead of its listing on November 8th. With a business model similar to Amazon’s Kindle, China Literature is China’s largest e-book company with over 175m monthly users, and Tencent will retain over 51% of the shares after the IPO, with private equity firm Carlyle Group holding just under 10%.

More to Come?

But Tencent, which owns China’s largest messaging app WeChat, is not stopping here. Yixin Group, China’s largest online car retailing platform in which Tencent holds a 24% stake, has launched an IPO to raise $870m for 10% of its shares and the tech giant is now considering another $1bn fundraise and IPO for its Tencent Music streaming business next year. And investors are reacting well to the spin-offs – Tencent’s shares are up 3.7% today and have risen over 106% year to date with the company hitting a market capitalisation of over $475bn.

Source: HKSE

Tencent Share Price. Source: HKSE

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