(Yicai Global) May 26 -- The music streaming arm of Chinese internet and online gaming giant NetEase has no comment to make regarding a report today that the firm is preparing to list on the Hong Kong bourse, The Paper reported.

NetEase Cloud Music is about to file for an initial public offering at the Hong Kong stock exchange, online new portal Jiemian reported. The firm plans to raise USD7 billion through the issuance of new shares accounting for 10 percent of its total share capital at a maximum offer price of USD330 each.

NetEase Music, which boasts around 800 million users, was valued around USD7 billion in September 2019 after raising USD700 million in B2 series financing.

Together with other innovation business sectors including e-commerce brand NetEase Yanxuan, NetEase Music logged a 40 percent jump in revenue in the first quarter from the same period last year to CNY4.2 billion (USD656.9 million), according to the parent firm’s latest financial report. An exact breakdown was not given.

Competitor Tencent Music, which listed in New York in 2018, saw profit climb 0.9 percent in 2020 from the year before to CNY4.95 billion (USD774.6 million) and revenue jump 14.6 percent to CNY29.15 billion (USD4.56 billion). Its shares [NYSE: TME] closed up 0.72 percent yesterday at USD15.36, giving it a market valuation of USD26 billion.

Editor: Kim Taylor