An IPO of Wanda’s sports assets would include Infront Sports & Media AG and World Triathlon Corp.
Byton is backed by China’s retail giant Suning and healthcare services provider Fullshare Holdings.
For Beijing, the move is seen helping to counter U.S. curbs on its technology companies and may draw the next generation of hi-tech firms to list at home.
Futu also counts venture capitalists Sequoia Capital China and Matrix Partners China as its backers.
The music streaming giant is selling 82 million American Depositary Receipts (ADRs) in a range of between $13 and $15 each.
The fund, which is Boyu’s fourth and would be its largest to date, is expected to close in the coming months.
HNA has attracted much scrutiny for its $50 billion worth of deals in recent years that included hotels in the United States and left it the largest shareholder in Deutsche Bank.
The IPO will value Babytree at $1.5 billion, rather than the $2 billion valuation in late May when Alibaba invested $214 million.
The last mega U.S. IPO of the year faces a still-weak mood towards tech stocks and ongoing market jitters ahead of next week’s G20 meeting in Buenos Aires.
The move comes after it invested in Ant Financial’s $14 billion financing round in June.