Losing faith: French music firm Believe lowers fundraising target ahead of IPO
French music firm Believe, which helps artists get discovered on streaming platforms such as Spotify, has trimmed down its fundraising hopes ahead of a stock market float this month.
The startup today said it planned to raise €300m (£258m) when it lists on the Euronext Paris exchange — below the €500m initially planned.
The price range was set at between €19.50 and €22.50 per share, and the initial public offering is expected to give the company a valuation of between €1.9bn and €2.1bn.
Believe said it expected final pricing to take place on 9 June, with shares set to start trading the following day.
Around 15 to 18 per cent of the group will be floated, depending on the price range at which shares are sold, it said.
Believe, whose artists include James Vincent McMorrow and French rapper Jul, specialises in developing up and coming artists and labels in the streaming era.
It is one of a number of music companies looking to cash in on the rising value of songs thanks to the popularity of streaming.
Earlier this year French media giant Vivendi unveiled plans for a €30bn stock market listing of Universal, the world’s biggest music company that is home to stars including Taylor Swift and Lady Gaga.
Believe, which was founded in 2005 by Denis Ladegaillerie, has seen its revenue grow by more than 50 per cent since 2018.
It has also made 18 acquisitions in the past six years, including a deal for specialist German hip hop label Groove Attack.