Aussie music service Guvera lodges prospectus ahead of IPO, in effort to raise $80m

June 1, 2016 3:34

Australian music streaming firm, Guvera, has confirmed it will go ahead with an initial public offering (IPO) with the company set to have a market capitalisation of $588m.

Speculation that Guvera would list on the ASX has been rife for more than 12 months, with the company now having lodged its prospectus with securities regulator the Australian Securities and Investments Commission (ASIC) as part of an $80m capital fundraising.

Guvera is offering 80m shares at an issue price of $1.00 per share, with a minimum share subscription of $40m. It also has the ability to accept over-subscriptions for a further 20m shares.

According to the prospectus, Guvera co-founders Claes Loberg and Darren Herft will retain 11.63% and 7.87% of the IPO’ed business which, according to the prospectus documents, lost $29.7m in the financial year of 2014 and $80.7m in 2015. The company has so far this financial year lost $55.7m.

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Nic Christensen

Nic Christensen worked for Mumbrella from 2013 to 2016, in roles including deputy editor and media & technology editor. He is former media writer for The Australian and has also worked as a reporter for The Daily Telegraph and senior producer for Radio 2GB.

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5 COMMENTS

Corporal Punishment 1 Jun 16

They are not projected to lose 55.7 million for 2016. They lost 55.7 million in the 1st half of the 2016 financial year. In the prospectus it says ‘HY2016″ not ‘FY2016″.

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Nic Christensen 1 Jun 16

Thanks for flagging corporal punishment.

Will correct.

Cheers

Nic – Mumbrella

Richard Dirth 2 Jun 16

I’m speechless that any company which has lost hundreds of millions of dollars since 2010, with very low chance of achieving profitability, has the balls to seek more funding via an IPO. The company is hinging a turn-around on a brand engagement patent and an ongoing focus on developing markets. The contribution of both items to engineer a turn-around is suspect. One more point: the prospectus details 14m global users, up from 1m since 2014; that’s 13m additional users in less than two years and no details on user engagement! To paraphrase Mark Ritson, utter BS.

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Yeah nah 2 Jun 16

Amazing this business is still alive. Has anyone recouped any of their investment? Plenty of funds have been sunk in.

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Thought 3 Jun 16

Maybe Mumbrella should approach some of the advertisers listed for comment. Would love to hear a partners opinion.

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