Queensland-based music streaming service Guvera was told on Friday afternoon that the ASX would block its IPO, which was seeking to raise up to $100 million.
The float has been controversial, with the company, which lost more than $81 million last financial year, being valued at $1.3 billion.
ASIC’s intervention resulted an amended prospectus issued on Wednesday evening, after the initial release nearly three weeks ago, but this afternoon the ASX said it had exercised its discretion to refuse admission, based on material contained in Guvera’s application for listing.
“Specific reasons remain confidential,” a spokesman said.
The decision leaves the company in a precarious financial position and on Friday evening, Guvera issued a statement saying it will be reviewing its legal options.
The company has withdrawn the prospectus from its website.
Here’s what Guvera said in its statement:
Guvera Limited (Guvera) has received correspondence from its lawyers, Arnold Block Leibler (ABL), regarding a letter received from the ASX today advising that it has exercised its discretion to refuse the applicant (Guvera Limited) admission to the official list of the ASX. The ASX has offered to meet with Guvera next week to discuss its decision.
Guvera is currently reviewing its legal options and obligations and will be communicating to the market when it is more informed about the position and course of action the Company can take.