Davis Polk & Wardwell and Skadden, Arps, Slate, Meagher & Flom have the lead roles on Chinese tech giant Tencent Holdings Ltd.’s proposed listing of its online-music arm, which is expected to raise at least $1 billion.

Shenzhen-based Tencent Music Entertainment Group set a placeholder amount of $1 billion in a regulatory filing, but Reuters has reported that the company hopes to raise up to $2 billion. The company is still deciding between the New York Stock Exchange and Nasdaq as listing venues.

Tencent Music operates three of China’s most popular online music streaming apps—QQ Music, Kugou Music and Kuwo Music—and also the mobile karaoke app WeSing. Combined, they have 800 million unique monthly active users, according to a prospectus. Proceeds from the IPO will mainly be used to improve its music content offerings and for product and service development.

In late 2017, Tencent Music and Spotify Technology S.A. became minority shareholders of one another after a share swap deal. Spotify, which listed on the New York Stock Exchange in April, now owns a 9 percent stake in Tencent Music.

As part of the listing, Tencent Music agreed to sell a combined stake worth about $200 million to Warner Music Group’s Chinese affiliate WMG China and Sony Music Entertainment.

Davis Polk Hong Kong partners James Lin and Li He are leading a team advising Tencent Music. The U.S. firm has been a regular legal adviser to Tencent; in December, Hong Kong partner Miranda So and Beijing partner Howard Zhang represented the Chinese company on the Spotify deal.

Han Kun Law Offices is serving as Chinese counsel to Tencent Music.

Skadden Hong Kong partners Julie Gao and Will Cai are advising underwriters Bank of America, Deutsche Bank, Goldman Sachs, JP Morgan and Morgan Stanley. Grandall Law Firm in Shanghai is advising the banks on Chinese law.

Both Davis Polk and Skadden previously advised on Tencent’s spinoff and listing of its ebook unit China Literature Ltd. in Hong Kong last year. Skadden advised China Literature on the $1.1 billion IPO while Davis Polk represent Tencent as a shareholder.

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