Two subsidiaries of music streaming company Guvera have gone into administration.
The Queensland business says it has appointed Deloitte to lead a restructure.
Subsidiary entities Guvera Australia Pty Ltd and Guv Services Pty Ltd — both vehicles working in international markets — have been placed into voluntary administration.
Guvera Limited, the unlisted public company, says it will work closely with the Deloitte to provide financial assistance for creditors.
The company says the move was prompted by the ASX decision to block a float on the exchange. Guvera warned in its prospectus that the business would not have the funds to continue if the IPO failed.
Guvera lost $55.7 million in the first six months of the 2016 financial year.
Shareholders, including a string of high net worth individuals and families, have invested $186 million into the business.
Prominent figures of listed high tech companies expressed concern at the proposed ASX listing, saying it would be damaging to the reputation of Australia’s technology sector.
Guvera was looking for up to $100 million in an IPO that valued the business at more than $1.3 billion despite the fact that it lost $81 million last financial year on revenue of $1.2 million.
The business, which competes with streaming giants Spotify and Pandora, is still operating.
“Guvera intends to continue to operate in its home market of Australia and will dedicate its focus, in the short term, on the high growth emerging markets of India and Indonesia as well as the United Arab Emirates (UAE), with a longer term objective of investigating opportunities in the Philippines and Vietnam,” the company said in statement.
Yemee Fernandes, commercial director APAC at Guvera, says the focus will primarily be in key emerging markets.
“We take with us a highly scalable platform that caters to brands as much as it does for music lovers, artists and rights holders,” Fernandes says.
“We offer our product in markets where smartphone adoption is growing rapidly alongside digital mobile advertising spends.”
(Clarification: An earlier version of this story said Guvera went into administration when in fact two subsidiary companies have been put into voluntary administration.)