July 9 (UPI) -- Chinese social media company Tencent said Monday it plans to spin off its online music business and list it separately in the United States in an initial public offering bid.
The proposal came in a filing to the Hong Kong Stock Exchange on Sunday.
An IPO in the United States could bring $29-$31 billion, the South China Morning Post reported Monday, citing estimates by the Chinese news portal Sina.com.
A valuation of that size could put Tencent, which dominates the Chinese music streaming market, on the level of Spotify, the Swedish music sharing service that went public in April.
Spotify owns 9 percent of Tencent's music division, so a spin-off and public stock offering would benefit it as well. Tencent also is a shareholder in Spotify.
The size, price range and number of shares to existing Tencent shareholders have not been determined.
The anticipated IPO will allow U.S. investors to buy into China's music streaming services. It can also serve the recording industry, which dealt with music piracy for years until the arrival of Apple's iTunes and other legal downloading options.