China's largest music streaming company, Tencent Music Entertainment Group, is preparing to go public, the latest sign of an increasingly robust IPO market.

Tencent Music, an arm of Chinese internet giant Tencent Holdings, has the potential to have one of the biggest tech IPOs ever, according to The Wall Street Journal. The offering, expected in the second half of 2018, could value the business in excess of $25 billion. That would be the fourth-largest U.S.-listed tech IPO ever. (The company is expected to list in the U.S. but has not made a decision yet.)

Public offerings have become a more popular exit for tech businesses recently. Following the slowest year for all IPOs in more than a decade, activity jumped in 2017 and has continued to increase. Successful IPOs from Dropbox, Zscaler, and other companies have helped persuade private-company executives that public markets are a viable option for raising capital.

The strong performance of Spotify's IPO earlier this month could especially bode well for Tencent Music's offering, WSJ reports. The Swedish music-streaming service's shares are already trading well above their private-market prices.

Published on: Apr 23, 2018