Music streaming and hardware company ROXi Music has hired advisers as it prepares to enter the London Stock Exchange’s junior market, PA can reveal.
The business, which makes the music entertainment console ROXi, said it will be only the second music streaming business to go public after Spotify.
It already counts the likes of Sheryl Crow and Robbie Williams as backers, and will use the funds raised to expand internationally.
In preparation for the float on the Alternative Investment Market (AIM), ROXi has confirmed that Arden Partners will act as the company’s investment bank, broker and nominated adviser. Fladgate will provide legal support and Hays Macintyre have been appointed auditors.
The company will target entering the market in the final quarter of this year.
ROXi’s entertainment and music device, which is made to be plugged into a television, provides access to over 35 million songs as well as karaoke, music trivia games and even yoga routines.
Speaking to PA, founder Rob Lewis said that the ROXi – which is primarily aimed at families – was partly created as a response to fears around the isolating effect of technology.
“Fundamentally the challenge we’re trying to resolve is that consumers are spending too much time on small screens, on Facebook, Instagram, and with headphones in their ears,” he said.
“Technology can tear us apart but it can also bring us together.”
Founded in 2014, ROXi’s current largest shareholder is Mr Lewis. It also has the backing of Saracens owner Nigel Wray and former Pandora finance boss Henrik Holmark
Former U2 manager Paul McGuinness and Brits founder Rob Dickins act as advisers for the company, while celebrity backers include Robbie Williams, Alesha Dixon and Sheryl Crow.
The decision to pursue an Initial Public Offering (IPO) was made following a successful fourth quarter of 2018 for the company, which saw a high level of return on its TV campaign featuring Ms Dixon and Ms Crow.
Mr Lewis told PA that for every £1 spent on the advertising, ROXi had made £7 back. Part of the company’s expansion plan will involve buying more TV media.
No target amount has yet been set for the IPO, but ROXi said the majority of the money will likely be raised from institutional funds.
In addition to doubling down on its advertising, the company plans to develop new music entertainment products and services following the float.