Guvera announces IPO, plans to raise $80m

Australian music streaming service Guvera has begun steps to list on the ASX.

Guvera Limited has today launched its Initial Public Offering of up to 80 million shares at an issue price of $1.00 per share. The company said it has the ability to accept oversubscriptions for a further 20 million shares. 

In commenting on the Prospectus’ lodgement with the Australian Securities and Investments, Commission Guvera Chairman Phil Quartararo said: 

“Primarily focused on mobile digital advertising, Guvera’s revenue model replicates that of a major social media platform. 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.” 

AMMA Private Equity has agreed to underwrite $10 million of the funds raised under the offer, on the condition that Guvera raises $30 million.

With over 14 million users across 10 countries, its indicative market capitalisation is approximately $588 million on the ASX listing. Guvera is targeting 21 million users by the end of 2017.

Guvera was founded on the Gold Coast in 2008 and has since tapped into India’s $200 million digital music market, becoming the first international streaming platform to do so in 2014. It claims 7 million users in India but is driven by its underlying strategy to provide users with more than just music.

International brands that Guvera already works with in India are Amazon, Yes Bank and McDonald’s. It’s also the official music partner of the IPL (Indian Premier League) cricket team Mumbai Indians.

Max Hegerman, Global Director of Brand Strategy at Guvera, said in a statement: “What sets Guvera apart from competitors is its ability to offer brands a patented brand-funded model of entertainment that uses the power of music to connect brands with consumers. Our Brand Channel advertising solution helps brands engage with their target audience on a more meaningful level, which in turn provides Guvera’s users with a wide variety of music and editorial content that they can enjoy in a minimally-disruptive way.” 

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