YORK music retailer Gear4Music has announced plans to float on AIM in a bid to raise capital to further develop its online sales.

The Clifton Moor-based firm said it expects to raise proceeds of at least £8 million through the planned listing on the London Stock Exchange's international market for smaller growing companies.

As well as expanding its ecommerce platform, Gear4Music said the funds will be invested in a new flagship showroom in London as well as increased investment in marketing and an extended product range.

Gear4music chief executive Andrew Wass said: "Over the last 12 years, we have established ourselves as one of the largest UK based online retailers of musical instruments and music equipment and are well placed to build on the positive momentum we have generated to date, particularly over the last two years, which have seen our revenues almost double and our European business expand significantly.

"We are very excited about this next stage in our development, with our forthcoming flotation on AIM enabling us to develop further our bespoke ecommerce platform, invest in additional marketing initiatives, extend the range of products we stock and open a flagship showroom in central London."

The last two years of growth follow Gear4Music securing backing from Key Capital Partners with £3.4 million of investment in 2012, and a move to new 135,000sq ft premises in Clifton Moor from a warehouse in Shipton by Beningbrough in 2013.

The business, which will employ a team of 160 by the end of the year, sells own-brand musical instruments and music equipment alongside premium third party brands including Fender, Yamaha and Gibson.

Gear4Music was founded in 2003 after starting life in 1995 as a recording studio off Heslington Road.

In the last two years the business has been revenue growth from £12.3 million in the year ended February 28, 2013 to £24.2 million in the year ended February 28, 2015.

As one of the fastest growing UK-based retailers within this sector, the directors believe the group is well positioned to take advantage of a fragmented UK market, and the ongoing shift from high street to online retail across Europe.

Panmure Gordon is acting as financial adviser, nominated adviser and broker to Gear4music.

Specialist equity capital markets lawyers at Walker Morris are advising Gear4music on its admission to AIM. The IPO is the law firm's third AIM transaction in a month.