Tencent denies report about WeChat spin-off IPO in Singapore
The leading internet company by revenue in China, Tencent Holdings Ltd, denied on Tuesday a China Daily's report regarding the company's popular mobile messaging app WeChat. The report said that Hong Kong-listed Tencent will be listing WeChat as a spin-off corporation in Singapore. "This market news is not true," Tencent spokesman Jerry Huang said.
Tencent invested heavily in WeChat as the internet company wanted to broaden its revenue streams. On Wednesday, the company is to announce its second quarter earnings. Tencent shares were valued at US$88 billion. The shares climbed as much as 1.5% during the early trade. However, by midsession, the shares were traded down 0.05% at HK$367.20.
WeChat currently has more than 300 million users in China. The mobile messaging app was said to be on the same market footing as with WhatsApp and KakaoTalk of South Korean company Kakao Inc. WeChat's growing user base would signify a strong potential revenue power for Tencent, of which the latter was depending on monetizing the app. Last week, Tencent released an updated WeChat with games, paid-for emoticons and a payment system.