Ramla SoniMusic streaming platform and digital distribution company Anghami is to become the first Arab tech company to be listed on the Nasdaq.
It comes as Anghami agreed to merge with publicly listed special purpose acquisition company (SPAC), Vistas Media Acquisition Company.
The transaction includes a $30m (£21m, €24m) commitment from UAE financial firm Shuaa Capital and $10m from the parent of the SPAC.
Enterprise value
The deal would give it an enterprise value of about $220m, Anghami stated.
Shuaa, which has $14bn in assets under management, acted as financial advisor and led a funding round for Anghami last year.
“Being a US-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.
Abu Dhabi HQ
Headquartered in Abu Dhabi, Anghami has more than 70 million registered users, and partnerships with Universal Music Group, Sony Music and Warner Music Group.
It launched in November 2012, providing unlimited Arabic and international music to stream and download whilst offline.
But since Spotify launched in several countries in the region in late 2018, Anghami now has competition.
Increased revenues
Anghami said revenues increased 80% over the past three years and are expected to increase five-fold over the next three years.
The company should have around $142m of cash on its balance sheet when the deal closes in the second quarter, it added.
The state-run Abu Dhabi Investment Office is also supporting the company to develop its global headquarters and a tech and research and development centre in Abu Dhabi.
