Thailand’s largest music company, GMM Music Plc, is planning an initial public offering (IPO) as early as this year, following a recent equity investment from Tencent Holdings of China.
The subsidiary of SET-listed GMM Grammy Plc would like to offer shares to the public “as soon as possible” this year or in 2025, chief marketing officer Fahmai Damrongchaitham said in an interview.
GMM Music increased its valuation to about $700 million after selling a 10% stake to Tencent last month.
GMM Grammy, one of the country’s largest media groups, announced last year that it plans to offer as much as a 30% stake in the music unit to both repay debt and fund the expansion of its business.
The “strategic investment with Tencent is actually a very important milestone”, Mr Fahmai said in an interview with Bloomberg Television. “We are aiming for as soon as possible depending on the market sentiment.”
Initial share sales in Thailand this year have raised about $457 million, a 13% drop from the same period last year, according to data compiled by Bloomberg. Mr Fahmai declined to indicate the size of the planned IPO.
GMM Music’s first-quarter revenue rose 11% from a year earlier to 978 million baht, accounting for about 70% of its parent’s total income, according to a GMM Grammy statement. GMM Grammy’s other main businesses include home shopping, movies and television.
GMM Music also plans to expand its music business in other Asian markets through partnerships with companies including Tencent and YG Entertainment Inc, Mr Fahmai said.