GUVERA CONFIRMS RUMOURS WITH $588M FLOAT

Written on the 1 June 2016 by Jenna Rathbone

GUVERA CONFIRMS RUMOURS WITH $588M FLOAT

MUSIC streaming company Guvera has confirmed year-long rumours that it plans to list on the Australian Securities Exchange after today launching a $588 million float.

Guvera, which joins a growing list of new public companies based on the Gold Coast, has lodged a prospectus with the ASX offering between 40 million and 80 million shares at an issue price of $1 each. The company has the ability to accept oversubscriptions for a further 20 million shares.

The proceeds of the offer will be used to repay creditors and fund the sales expansion activities in a number of its markets.  

Upon a successful listing, Guvera is expected to have a market capitalisation of around $588 million.

Guvera is a music streaming service offering legal access to millions of songs and content from local and international artists through its patented, brand-funded entertainment platform.

Guvera holds registered patents in its major markets and has music rights with more than 80 music labels, aggregators and rights bodies around the world.  

Most recently the company was scrutinised for boasting to investors about millions of people registering to its service, despite internal concerns the numbers were misrepresented.

In a shareholder update earlier this year, the company reported that user numbers had risen to 15 million. However, it is not clear how many people are listening or just registering for the service.  In its prospectus, Guvera says it has 14 million users.

In another embroilment, Guvera purchased Blinkbox from Tesco in 2015, but the business went into administration within six months and Guvera wrote off a reported $2.3 million.  Legal proceedings are in motion around the purchase of that business.

However, the setbacks have not stopped the business that hopes to rival Spotify from listing on the ASX.

AMMA Private Equity, which is chaired by Guvera's CEO Darren Herft, has agreed to underwrite $10 million of the funds raised under the offer, conditional on Guvera raising $30 million.  Herft is the sole director of AMMA Private Equity and owns 50 per cent of the underwriter.

Guvera chair Phil Quartararo, who has more than 30 years' experience in the music industry as president of Warners Brothers Records and CEO of Virgin Records America, says the time for a new opportunity in the music industry has never been better.

"Primarily focused on mobile digital advertising, Guvera's revenue model replicates that of a major social media platform," says Quartararo.

"The provision of music is a mass-market service, and I believe Guvera is the best positioned music company to take advantage of this mobile advertising explosion."

Melbourne-based D H Flinders Corporate Advisory is acting as the lead manager to Guvera for the IPO.

Guvera was founded by Claes Loberg, Darren Herft and Brad Christiansen. 

Read more about Guvera:

 


Author: Jenna Rathbone
About: Jenna Rathbone is a Queensland-based journalist who writes on a range of issues including business and property affairs and social issues.
Connect via: Twitter

Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter