(Corrects to 300 million euros from up to 406 mln and to show number of shares offered will vary based on price)
PARIS, Oct 15 (Reuters) - Music streaming service Deezer said it expects to raise 300 million euros ($343 million) from selling new shares when it lists on the Paris stock exchange later this month.
Deezer said trading of its shares on Euronext Paris would start on Oct. 30 as it looks to raise cash to try to keep up with larger, deeper-pocketed rivals such as Apple Inc and Sweden's Spotify.
"The IPO will allow us to accelerate our growth and continue to play a leading role," Chief Executive Hans-Holger Albrecht said in a statement on Thursday.
Deezer and its rivals represent a shift in the music industry, away from buying and downloading tracks to listening online to songs stored remotely. The company has 6.3 million subscribers who can listen to a catalogue of 35 million songs for 9.99 euros a month.
The company set a price target for the initial public offering of between 36.40 euros and 49.24 euros, and plans to sell 8.242 million new shares at the lowest price, falling to 6.092 million at the highest.
Deezer said it expected net proceeds of about 291 million euros. An over-allotment option to increase the number of shares sold by 15 percent could bring additional gross proceeds of 45 million, it said.
Deezer's largest shareholder with 27 percent is tycoon Len Blavatnik's Access Industries, while Orange owns 11 percent. Three music labels, Warner Music, Sony Music and Universal Music, part of Vivendi, together own close to 15 percent of the shares.
Analysts have put a potential stock market value of about 1 billion euros on the company.
BNP Paribas and Bank of America Merrill Lynch are acting as joint global coordinators and joint bookrunners for the IPO. Citigroup and Societe Generale are acting as joint bookrunners. ($1 = 0.8740 euros) (Reporting by James Regan; Editing by Ingrid Melander and Andrew Callus)