Australian music streaming app maker Guvera plans to raise up to AUD80 million ($58 million) in a listing, giving it a market capitalisation of AUD1.3 billion, according to Reuters.

The plan is to sell between 40 million and 80 million shares for AUD1 to repay creditors and debts, and fund expansion into developing markets, building on its base of 14 million subscribers.

Its takings could hit AUD100 million if the offer is oversubscribed.

Guvera’s chairman, Phil Quartararo, said in the company’s prospectus that the firm was established in response to the mass illegal consumption of online music.

“The Guvera founders believed that this was the opportune time to adopt a new approach to digital entertainment by engaging the advertising industry; to fund music, as it, too, was going through a shift,” he added.

Guvera said its revenue model replicates that of a major social media company. Most of its revenue from the sale of advertising to consumer brands and marketing agencies. A small proportion is generated through subscription fees paid by users.

The company started off in 2008 as a web-based download service available in Australia. In 2013, it transitioned to become a cloud-based streaming platform and in 2014, it expanded its operations to 20 markets.

Now it wants to focus on 10 countries, including India, Russia, Saudi Arabia and the US.

“The music industry’s revenues have declined from $36 billion in 2000 to $15 billion in 2014,” said Quartararo, adding that Guvera wants to be the company that changes this for the better.

The firm to date has raised more than AUD180 million, which has been invested in developing the business.

Guvera now wants to focus on user and brand acquisition; user retention in existing markets; and expanding operations into select emerging markets.

The company’s Australian subscribers grew more than ten-fold from January to December last year, and its India subscribers grew from 1.7 million to 7 million from January to May 2015, Reuters said.

However, its prospectus also said it “has a history of operating losses” and expects this to continue in the future, adding that the company has no immediate plans to pay dividends.

It also forecast a net loss of A$55.7 million for fiscal 2016, an improvement over the previous year’s A$81.1 million loss.

Guvera is in a competitive market and considers its rivals to be Spotify, Pandora and Deezer.

Despite its popularity, Spotify is yet to post a profit and is dealing with competition from Apple Music and Tidal. In 2015, its net loss worsened to €173 million, from €162 million in 2014.