China’s dominant music streaming company Tencent Music Entertainment Group is preparing for a flotation later this year that could value the business north of US$25 billion.

Tencent Holdings, which boasts China’s biggest social network and gaming firm and became the first Asian entity to enter the club of companies worth more than US$500bn, has been hinting at taking the public route with Tencent Music, its streaming division, for some months. Those plans are taking shape.

No doubt buoyed by Spotify’s own direct listing on the New York stock exchange, Tencent is said to be eyeing its own entry in the second half of the year in what is touted as one of the biggest tech IPOs in history. Though details aren’t clear at this stage, The Wall Street Journal reports the public offering could take place in the United States.

Tencent Music has been exploring all avenues to expand its activities

Tencent is exploring a reported 10% equity swap with Spotify, which was completed in December.

Tencent has a strong position in China’s nascent digital music market. The major music companies have all signed content licensing agreements with the streaming giant, which claims roughly twice as many paying customers as Spotify, and Merlin recently came on board via its own arrangement with Tencent’s QQ Music, Kugou Music and Kuwo Music on behalf of its independent music members.