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Tencent, the largest technology company in Asia, has raised $ 6 billion since the Hong Kong-listed company announced a new ticket sale today.
Tencent hit the markets for the last time raising $ 5 billion in January 2018. This time, it is proposing a five-tranche bond that is almost in line with reports released earlier this week, which speculated that the Chinese giant would look for to raise $ 5 billion. The tickets will be issued on April 11, said Tencent.
How the new capital will be spent is unclear. Tencent did not provide detailed information in its announcement and the company did not respond to a request for comment at the time of writing this report.
"We have a solid balance sheet with a large cash flow and a rich pool of listed securities. In the future, we will continue to be disciplined in our financial management and focus on maintaining a proper balance between capital expenditures, investments and returns, "said CFO , John Lo, in a statement.
Tencent is especially famous for WeChat, the Chinese messaging application that has become the mobile internet in the country, in addition to its lucrative gaming business, as well as the fintech, cloud, social media and others. There are also more and more striking investment agreements with companies located outside of China, with the support of Reddit, Snap and Tesla, as well as many Chinese state-owned enterprises.
The company's star reached its peak at the end of 2017, becoming the first Asian company worth $ 500 billion, but the road has been mixed since. Tencent struggled a lot to maintain its high standards last year, as the Chinese government blocked the issuance of new gaming licenses, which reduced its ability to make money and left the game open. nervous investors.
However, there are positive signs in 2019. The gambling licensing process for China has resumed and the company has regained profit growth thanks to its investment in Meituan, which was opened to the public as part of a Mbadive IPO of $ 4 billion. A major reorganization was undertaken to reduce Tencent's financial dependence on gambling. While the last quarter was disappointing overall, emerging business units such as social media, cloud computing and financial technologies have recorded positive growth. The company's share price has risen by about 20% compared to the end of 2019, giving it a market capitalization of about $ 456 billion.
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