Music streaming and hardware company ROXi Music has hired advisers as it prepares to enter the London Stock Exchange junior market, PA can reveal.
The company, which makes the ROXi music entertainment console, said it would only be the second music streaming company to go public after Spotify.
It already counts Sheryl Crow and Robbie Williams among its 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 firm’s designated investment bank, broker and advisor. Fladgate will provide legal support and Hays Macintyre has been appointed as auditor.
The company will aim to enter the market in the last quarter of this year.
ROXi’s music and entertainment device, designed to be plugged into a TV, provides access to over 35 million songs as well as karaoke, musical quizzes and even yoga routines.
Speaking to PA, founder Rob Lewis said the ROXi – which is aimed primarily at families – was created in part in response to concerns about the insulating effect of the technology.
âBasically the challenge we’re trying to solve is that consumers are spending too much time on small screens, on Facebook, Instagram, and with headphones in their ears,â he said.
âTechnology can separate us, but it can also bring us together. “
Founded in 2014, the current main shareholder of ROXi is Mr. Lewis. He 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 famous backers include Robbie Williams, Alesha Dixon and Sheryl Crow.
The decision to pursue an Initial Public Offering (IPO) came following a successful fourth quarter 2018 for the company, which saw a high level of return on its TV campaign starring Ms Dixon and Ms Crow.
Mr Lewis told PA that for every Â£ 1 spent on advertising, ROXi got Â£ 7 back. Part of the company’s expansion plan will be to buy more TV media.
No target amount has yet been set for the IPO, but ROXi said the majority of the money will likely come from institutional funds.
In addition to doubling its advertising, the company plans to develop new music entertainment products and services after the float.