UPDATE 1-Australian streaming music player Guvera plans $58 mln IPO

Wed Jun 1, 2016 3:57am EDT
 
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* IPO would give company A$1.3 bln market cap

* Company sees industry sales growing in double digits for years

* Half its subscribers are in India; is targeting emerging markets (Recasts throughout, adds analyst quote)

By Byron Kaye

MELBOURNE, June 1 (Reuters) - Australian music streamer Guvera Ltd, which competes with Apple Inc, Spotify Ltd and Pandora Media Inc, said it plans to raise up to A$80 million ($58.05 million) in a listing to bankroll an ambitious expansion in developing markets.

In a listing prospectus lodged on Wednesday, the company with operations from India to Russia said it aims to sell 80 million shares for A$1 each to fund growth in emerging markets.

The company added that post listing, it will have a market capitalisation of A$1.3 billion, based on the number of shares to be kept by existing shareholders of the company started in the beachfront city of Gold Coast in 2008.

That would make Guvera the biggest Australian player in the global music streaming industry, which it said is forecast to grow revenue by more than 10 percent a year until at least 2019, and which has traditionally been dominated by U.S. heavyweights.

The Australian company said it doesn't charge most users and gets most of its revenue from advertising. It plans to build on its current base of 14 million subscribers, Guvera said.   Continued...