Anghami to list on Nasdaq after merger approval

Anghami entered the deal in March last year with an aim of listing on the Nasdaq stock exchange in New York. The news brings the UAE-based music streaming platform closer to becoming the first Arab technology company to list on that stock exchange.

VMAC’s shareholders voted to approve the proposed merger last week, with about 98% of votes cast in favour of the merger. The merger capped Anghami’s value at $220m pending “satisfaction of the closing condition”, after which the music company is expected to begin trading on Nasdaq under the banner ANGH. The deal is likely to be completed “following the special meeting of stockholders,” according to a Form F-4 that was filed with the US Securities and Exchange Commission in October.

Founded by Elie Habib and Eddy Maroun in 2012, Anghami has offices in Dubai, Cairo and Riyadh. It is owned by venture capital firms and strategic shareholders in the Middle East and North Africa (MENA) region, including media groups and telco companies, which collectively own about 68% of the music streaming platform, with the balance owned by the founders.

The music company says it now has 70 million registered users with about 1 billion streams per month, and boasts a catalogue of more than 57 million songs. The platform has secured strategic partnerships with the three major labels ­– Sony Music, Universal Music Group and Warner Music Group – as well as agreements with 36 telcos across the MENA region.

In December, Sony Music Entertainment Middle East struck a joint venture label deal with Anghami. The company says its international head of partnerships, Wassim ‘Sal’ Slaiby, an LA-based music industry entrepreneur and manager, has been instrumental in formulating its global partnerships.

Anghami says its revenue has grown 80% over the past three years and predicts a further five-fold increase in the coming three years.

VMAC’s shares, meanwhile, grew more than 20% in premarket trading on 21 January, according to Arab News.