Following the highly successful debut of Spotify Technology SA (SPOT  ), the Chinese music-streaming company Tencent Music Entertainment Group is heading toward an initial public offering that could rank among the biggest technology IPOs ever. Eyeing a potential valuation of over $25 billion, the largest music-streaming company in Asia is planning an IPO in the second half of 2018, in preparation for listing on an unspecified major exchange in the U.S.

After months of speculation about a public debut, the Tencent Holdings Ltd. subsidiary is making its first formal moves in the process. IFR reported on Monday that Tencent Music has invited investment banks to compete for a part in its IPO next week. The selected banks would help the streaming company maneuver an offering that could raise between $3 billion and $4 billion.

The digital-music arm of Chinese tech giant Tencent Holdings Ltd. (HKG: 700), Tencent Music was formed in 2016 after its parent company combined its existing music-streaming business, the popular QQ Music service, with China Music Corporation in a merger valued at $2.7 billion. Last November, Tencent Holdings, which operates messaging platforms QQ and WeChat, became the first company in Asia to achieve a market value of more than $500 billion.

The Shenzhen-based Tencent Music operates three music-streaming platforms---QQ Music and former China Music Corp. services KuGou and Kuwo----and draws more than 700 million monthly active users across its services. According to estimates made by Citigroup, the Tencent Holdings subsidiary holds over 70% of the music-streaming market in China between its different platforms. Neither Spotify nor Apple Music (AAPL  ) have challenged Tencent Music's dominance of the Chinese music-streaming market, which has grown with the proliferation of digital-payment platforms and music services offering subscription access to millions of songs.

According to a Wall Street Journal report in March, recent private transactions have valued Tencent Music at more than $25 billion. This latest figure is a marked increase over relatively recent estimates of the company's worth. Last September, Bloomberg reported that Tencent Music was seeking funding ahead of its IPO at a $10 billion valuation. Tencent Music is expected to trade on a major U.S. stock exchange, though the company has yet to make a final decision on its specific trading venue.

News regarding Tencent Music's planned IPO has developed in earnest after last month's successful stock-market debut by its highest-profile competitor, Spotify. A public debut by Tencent Music could be profitable for Spotify, which owns a part of its Chinese counterpart. Following a trade between the two businesses last December, Spotify holds roughly 9% of Tencent Music's shares, according to filings made by Spotify. For its part, Tencent Music now controls a 7.5% stake in the Stockholm-based company, a percentage now estimated to be worth over $2 billion, after Spotify's own public debut.

The major Western record labels are also following the development of Tencent Music's IPO plans with interest. Tencent holds exclusive rights to streaming the catalogues of Sony Music (SNE  ), Warner Music Group, and Universal Music Group (EPA: VIV). Warner and Sony both negotiated distribution deals with Tencent Holdings in 2014; Universal Music finalized a similar licensing agreement with Tencent Music in May 2017. Tencent Music's upcoming IPO could benefit the three major record companies, which each hold a stake in Spotify.