Deezer, a French music streaming service, failed to garner much investor interest for its Paris market debut seven years after an unsuccessful IPO, and its shares plunged 11% in early trading on Tuesday (Jul 5).
Deezer started at 8.50 euros per share before dropping to 7.950 euros by 07:39 GMT. The music industry is moving away from purchasing and downloading tunes and toward online song listening with services like Deezer and its competitors.
In April, Deezer revealed plans to list on the Paris Stock Exchange in a deal valued at slightly over 1 billion euros (US$1 billion). A Special Purpose Acquisition Company (SPAC), 12PO, was created specifically for the transaction.
Due to the state of the market in 2015, Deezer was forced to postpone its initial IPO ambitions. One of Deezer’s more significant competitors is Spotify, which went public in 2018.
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