• Global music platform where a brand can set up its own music channel
  • Revenue business model where brands can become recurring customers
  • Brands able to target existing consumers on the Guvera platform

Guvera Limited (Guvera) is pleased to announce the commencement of a national roadshow and capital raising en route to an ASX listing.

Guvera holds a number of patents around its brand-funded entertainment model, enabling the business to provide brands the opportunity to build music streaming and entertainment channels to deepen engagement with consumers.

Guvera Chairman and former CEO at Virgin Records, Warner Bros. Records and EMI, Phil Quartararo said:

“Guvera’s revenue model replicates that of major social media platforms based on mobile digital advertising. The provision of music is a mass-market service, and I believe Guvera’s brand-funded business model helps position the music company to take advantage of this mobile advertising explosion.”

Guvera was founded in Queensland in 2008 as an idea to take on piracy. Its focus has been to provide users with a legal way to access music through its brand-funded model. Since launching in 2010 as a digital music platform, the business has transitioned to become a multi-platform streaming provider.

The company, while headquartered in Australia, has its sights firmly set on the global music market and is strategically focused on high-growth, emerging countries including India and Indonesia. The platform currently operates across ten countries and was the first international streaming platform to enter the lucrative Indian digital music market. 

When commenting on how Guvera differentiates itself from other streaming services, Max Hegerman, Global Director of Brand Strategy at Guvera, said:

“We are pleased to enter this next stage of the Guvera IPO programme as we look to expand and grow Guvera’s business strategy. 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. Since Guvera’s inception, we have been brand-funded and free, because, we understand that more than 90 per cent of the music streamers in the world do not want to pay for music.

“As we look to focus primarily in key emerging markets, we take with us a highly scalable platform that caters to brands as much as it does for music lovers, artists and rights holders. We offer our product in markets where smartphone adoption is growing rapidly alongside digital mobile advertising spends.”

In accordance with the Replacement Prospectus lodged with ASIC on 16 June 2016, Guvera is undertaking an initial public offering (IPO) of up to 80 million shares at an issue price of $1.00 per share, with a minimum share subscription of 50 million shares. Guvera has the ability to accept oversubscriptions for a further 20 million shares. Guvera’s quoted indicative market capitalisation on listing at the offer price of $1.00 per share based on the minimum subscription amount of $50 million being raised is approximately $655 million.AMMA Private Equity has agreed to underwrite $10 million of the funds raised under the offer, conditional on Guvera raising $40 million.

Disclaimer

A Replacement Prospectus for the offer of ordinary shares in Guvera Limited was lodged with ASIC on 16 June 2016. The Replacement Prospectus may be obtained by visiting www.guveralimited.com. Investors wishing to apply for ordinary shares should read the Prospectus carefully prior to deciding whether to acquire the ordinary shares. Anyone who wants to acquire the ordinary shares offered in the Replacement Prospectus will need to complete an application form that will be in, or accompany the Replacement Prospectus. Guvera does not make any representation or warranty, express or implied, or provide any guarantee regarding the likely investment returns, the performance of the shares of Guvera or the suitability of the shares for any investor. 

* Quoted indicative market capitalisation is based on the minimum subscription of A$50 million being raised, and is calculated by reference to the offer price per share (A$1.00) multiplied by the total number of quoted shares on issue at completion of the offer and which does not include approximately 635 million shares which are subject to escrow arrangements. Shares may not trade at the offer price after listing. If shares trade below the offer price after listing, the indicative market capitalisation may be lower.