AAA Deezer composes IPO plans

Deezer composes IPO plans

France-based music streaming platform Deezer, backed by a range of corporates, plans to float on the Paris stock exchange in the coming months at a €1bn ($1.1bn valuation).

Deezer was first reported last month to be seeking either another funding round or initial public offering at the same valuation, but decided on the later to get a head start on its rival Spotify, which secured $526m in a series G round backed by telecoms firm TeliaSonera in June 2015.

The company’s competitors also include Apple Music, Tidal and Pandora Music.

Established in 2006, Deezer operates an online music streaming service used by some 6.3 million customers. The platform has a catalogue of 35 million songs and sells subscriptions at €9.99 ($11).

The proceeds will be used to further develop the platform and increase distribution.

Broadcaster ProSiebenSat.1 invested an undisclosed sum in June 2014 in return for a minority stake. Conglomerate Access Industries, the owner of record label Warner Music, had earlier acquired an 11% stake in 2012 when it bought out telecoms firm France Telecom-Orange.

Deezer previously obtained $20m from venture capital firm Idinvest Partners, private equity fund Dotcorp Asset Management and CM-CIC Capital Privé, a subsidiary of financial services provider CIC France.

The listing will be managed by BNP Paribas, Bank of America Merrill Lynch, Citigroup and Société Générale.

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