GMM strikes a chord with Tencent, plans IPO crescendo
Thailand’s largest music company, GMM Music, is gearing up for an initial public offering (IPO) as early as this year, thanks to a significant equity investment from China’s Tencent Holdings.
GMM Music’s Chief Marketing Officer Fahmai Damrongchaitham revealed in a candid interview with Bloomberg Television that the company is aiming for an IPO as soon as possible, depending on the market sentiment. This comes hot on the heels of Tencent acquiring a 10% stake in the company last month, catapulting GMM Music’s valuation to a staggering US$700 million (around 25 billion baht).
GMM Music, a key player under the umbrella of GMM Grammy, has ambitious plans. The IPO could be as soon as this year or in 2025. This initiative aligns with GMM Grammy’s strategy to offer up to a 30% stake in its music unit, with the twin goals of repaying debt and fuelling business expansion.
“The strategic investment with Tencent is a very important milestone.”
This investment not only elevates GMM Music’s market position but also sets the stage for future growth and regional expansion.
Despite a 13% drop in initial share sales in Thailand this year, raising about US$457 million, GMM Music remains undeterred. The company reported a robust 11% increase in first-quarter revenue, totalling 978 million baht, which constitutes around 70% of its parent company’s income.
Looking beyond borders, GMM Music plans to extend its reach into other Asian markets through strategic partnerships with major players like Tencent and South Korea’s YG Entertainment, reported Business Times Singapore.
In related news, Thai trade representative Narumon Pinyosinwat held talks with a Tencent executive in Hong Kong, alongside a representative from Shanghai East Best Foreign Trade (SEBFT), a leading durian importer from China.
In other news, a man expressed admiration for the treasured K-pop star Lisa Manoban, a member of the world-famous music group, BLACKPINK, unconventionally, by tattooing “Lisa Rockstar” on the side of his head. He cited his immense pride after participating in the music video shoot for Lisa’s hit release, Rockstar.
