Tencent-Backed GMM Music Plans IPO In Thailand For Expansion

Tencent’s logo on a building in Shanghai.

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Thailand’s GMM Music, backed by Chinese tech giant Tencent, is planning to list on the Stock Exchange of Thailand.

Tencent counts billionaires Ma Huateng and Martin Lau among its biggest shareholders.

GMM Music will offer 228.8 million shares, or 26%, in a planned IPO and parent company GMM Grammy will remain the largest shareholder with a stake of no less than 63.55%, according to an announcement by GMM Grammy.

The IPO needs approval from Thailand’s Securities and Exchange Commission.

In June, Tencent subsidiary Tencent Music Entertainment (TME) announced it would acquire a 10% stake in GMM Music for $70 million, valuing the company at $700 million. TME paid $45 million in cash and transferred 30% of its stake in Thai online music streaming platform Joox Thailand to GMM Grammy.

GMM Grammy announced the IPO plan last year, saying it would use the proceeds to repay debt and expand into new markets, with China being a key target due to its immense potential. GMM Music manages popular Thai artists such as Bird Thongchai, Peck Palitchoke and the rock band Bodyslam.

GMM Grammy is a major Thai entertainment conglomerate involved in music, media, film, broadcasting, talent management and home shopping. Despite a revenue increase from 5.3 billion baht in 2022 to 6 billion baht in 2023, the company reported a net loss of 132.6 million baht, compared to a 166.4 million baht net profit reported the previous year.

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