TENCENT Music Entertainment launched its hotly-anticipated U.S. initial public offering (IPO) of up to US$1.2 billion Monday after global stock markets were boosted by a truce in Sino-U.S. trade conflict.

The music arm of tech giant Tencent Holdings is looking to raise between US$1.07 billion and US$1.23 billion in a New York Stock Exchange IPO, according to a filing with the U.S. Securities and Exchange Commission.

The company originally planned to launch its offering in mid-October.

However, it then decided to delay the IPO over worries the steep global stock market selloff in the past few months would affect the pricing.

The music streaming giant is selling 82 million American Depositary Receipts (ADRs) in a range of between US$13 and US$15 each, according to the filing.

Tencent Music could sell an additional 12.3 million shares if an overallotment option is exercised.

A source close to the deal said Tencent Music was keen to get itself listed this year considering the uncertainties of global trade, not because it desperately needed fresh money.

At US$1.23 billion, the IPO would still be one of the largest by a Chinese company in the United States this year, behind the US$2.4 billion raised by video streaming company iQiyi in March and the US$1.6 billion garnered by online group discounter Pinduoduo in July.

In total, Chinese companies have raised US$7.8 billion from U.S. IPOs so far this year — the biggest amount since 2014 — according to Refinitiv data.

(SD-Agencies)