Deezer postpones its IPO project

Around mid-September 2015, the French music streaming company Deezer announced its plans to go public soon. As this IPO was about to take place, the company finally announced that its project would be postponed.

Project postponed for Deezer

After a few weeks of preparations for an initial public offering, Deezer announced on 24 October 2015 its decision to postpone its initial public offering. That is only three days from the date scheduled for this operation.

It is a project that had been initiated since September of the same year. With this transaction, the company had expected to raise €300 million, which would have strengthened its position in relation to its direct competitors, Spotify and Apple Music.

For the time being, Deezer will continue to analyze market conditions that did not appear to be favourable for the initial public offering. While waiting to take the next step, the company will analyze interesting financing alternatives for the future.

In any case, the company considers that the company’s situation is conducive to development. Whether in terms of positioning or financing capacity. Deezer therefore underlines the fact that its growth policy can continue.

deezer scholarship

Beyond Deezer’s information, the reason for the suspension of the initial public offering project is said to be a lack of orders received, preventing it from completing its action. As a reminder, the form had established a price ranging from 36.40 and 49.24 euros for its future shares, for a valuation exceeding one billion euros.

Unfavourable market conditions

Deezer has therefore put forward poor market conditions compared to the postponement of its proposed initial public offering. In any case, the company did not succeed in attracting the attention of investors. On the one hand, the stock markets are particularly unstable. In addition, there are some rather negative figures that have been revealed by American operators working in the digital field, such as Pandora and Netflix. The poor figures published by the latter have undoubtedly helped to dissuade investors.

Despite everything, Deezer is confident. In particular, the company highlights a previous fundraising campaign, in this case the one involving the Access Industries fund, which raised €100 million. At the same time, Deezer’s growth follows a “healthy” pattern. In any case, the music streaming specialist will continue to study in detail the possible financing alternatives…