NetEase Fires Up Tencent Rivalry Via Hong Kong IPO Of Music Business

NetEase Inc NTES launched the Hong Kong initial public offering (IPO) of its music business, Cloud Village, to raise a maximum of $519.6 million (HK$4.04 billion).
Cloud Village will offer 16 million shares at HK$190 - HK$220.
There is an over-allotment option to issue an additional 2.4 million shares.
Cloud Village runs NetEase's music streaming business. Cloud Village has 185 million monthly active users, CNBC reports.
Cloud Village's revenue rose 51.5% year-on-year to CNY 5.1 billion ($799.6 million) for the nine months ended September 30.
However, Cloud Village suffers heavy losses as it competes for market share against Tencent Holdings Ltd's TCEHY music streaming business Tencent Music Entertainment Group TME.
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Price Action: NTES shares traded higher by 2.42% at $116 in the premarket session on the last check Tuesday.