Spotify competitor Anghami to become first Arab tech company to list on Nasdaq

Anghami

03/03/2021 11:19

By Yousef Saba
    DUBAI, March 3 (Reuters) - Anghami, which operates a music
streaming app popular in the Middle East and North Africa, said
on Wednesday it will become the first Arab tech company to list
on the Nasdaq after agreeing to merge with a special purpose
acquisition company (SPAC).
    The deal implies an enterprise value of about $220 million, 
Anghami said in a statement.
    "Being a U.S. listed public company gives us access to
growth capital and a global platform that is the best in the
world," Anghami co-founder and CEO Eddy Maroun said in the
statement.
    Under the deal, Anghami will merge with publicly listed
Vistas Media Acquisition Company Inc  VMAC.O . The transaction
includes a $30 million commitment from UAE financial firm Shuaa
Capital  SHUA.DU  and $10 million from the parent of the SPAC.
    Shuaa, which has $14 billion in assets under management,
acted as financial advisor and also led a funding round for
Anghami last year.
    Headquartered in Abu Dhabi, Anghami has more than 70 million
registered users and partnerships with Universal Music Group,
Sony Music and Warner Music Group. 
    Its main competition is Spotify  SPOT.N , which became
available in several countries in the region in late 2018.
    Anghami said revenues have jumped 80% over the past three
years and are expected to increase five-fold over the next three
years. The company should have around $142 million of cash on
its balance sheet upon closing of the deal which is expected in
the second quarter, it added.
    It is also receiving support from the state-run Abu Dhabi
Investment Office (ADIO) to develop its global headquarters and
a tech and research and development centre in Abu Dhabi.

 (Editing by Ana Nicolaci da Costa)
 ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))