Tencent Music Entertainment Group filed for a U.S. initial public offering Tuesday as it seeks to raise $1 billion.
That total is down from the $2 billion the subsidiary of Chinese e-commerce giant Tencent Holdings (TCEHY) was expected to generate last month, according to Reuters.
Tencent Music said Tuesday in a filing with the U.S. Securities and Exchange Commission that it's the largest online music entertainment platform in China, operating the top four mobile music apps by monthly active users. The company had over 800 million unique MAUs in the second quarter of this year. Tencent also boasts China's most comprehensive library of music, which features over 20 million tracks from over 200 domestic and international artists.
"We are pioneering the way people enjoy online music and music-centric social entertainment services. We have demonstrated that users will pay for personalized, engaging and interactive music experiences," the company said in its Form F-1 Securities and Exchange Commission filing Tuesday.
The company admits that people in China don't spend as much on entertainment as Americans, with many resorting to piracy. However, the company predicts that the number of people paying for music will quadruple between 2017 and 2023.
Bank of America, Deutsche Bank, Goldman Sachs (Asia), and JPMorgan will act as underwriters for the debut.
Tencent owns 58.1% of Tencent Music while Spotify Technology (SPOT) owns 9.1% of the company.
Tencent shares are down 2.1% Tuesday.