Deezer will offer over 8.2 million shares to both domestic and worldwide investors in the price range of 36.40 euros ($41.65) and 49.24 euros per share, which will net the company somewhere between 300 million euros and 406 million euros.
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“It will help us expand our offering through innovative marketing campaigns, drive deeper distribution through our telecom and manufacturer partnerships, and further improve our product and content to deliver an even better service for our listeners”, Deezer CEO Hans-Holger Albrecht said.
Deezer said it will have a value of between 900 million and 1.1 billion euros following its initial public offering (IPO) later this month.
The company said that, all going well, it plans to begin trading as “DZR” on the Euronext from October 30.
The subscription period for shares will end October. 26 for the French public and the following day for global investors, Deezer said. Founded in 2007, the company raised its last private funding of 100 million euros from Russian-American billionaire Len Blavatnik in 2012. But according to its website, Deezer has 16 million monthly active users and 6 million paying subscribers compared to the 75 million active users Spotify has, with more than 20 million of those subscribing to its paid tier. Last month Baldeyron told AFP the IPO move would give Deezer access to “a more diversified and more worldwide base”. If anything, Apple will have a positive effect by helping to develop the streaming market, he said. Revenue from full-length CDs, which long dominated the industry, fell by 31.5% in the first half of 2015 in the United States, the world’s largest market.
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Earlier, we pointed to a few very troubling subscriber numbers at Deezer, the Spotify competitor that still hasn’t set foot in the USA and remains woefully unprofitable. It has since also acquired Stitcher, the main United States independent provider of podcasts and content, enabling the French start-up to launch a combined offer of music and podcasts.
