Last Friday, Anghami (NASDAQ:ANGH) became the first Arab technology company to be listed on the Nasdaq exchange. Anghami made its public debut via a special purpose acquisition company (SPAC) business merger with Vista Media Acquisition worth $220 million. In addition, the company operates as a music-streaming platform in the Middle East and North Africa (MENA). On its second day of trading, shares of ANGH stock are up over 55%.
Anghami currently has more than 72 million songs in its libraries and more than 75 million registered users. Additionally, the streaming platform has more than 40 telecommunication partners in the MENA region, including Warner Music Group (NASDAQ:WMG) and Sony Music (NYSE:SONY)
Furthermore, Anghami co-founder and CTO Elie Habib commented on the deal, saying, “We launched in 2012 with the dream of making a valuable difference for users and artists alike, and nearly a decade later, with around 58% of the market share in the Middle East, we have earned a place not only in the industry, but also in the hearts of music lovers across the region.”
So, what else should investors know about this exciting music platform? Let’s jump right in.
ANGH Stock: 9 Things to Know as Anghami Soars Higher
- Anghami’s three largest markets are Egypt, Saudi Arabia and the United Arab Emirates.
- On top of that, Anghami’s existing shareholders own the largest stake in ANGH stock, holding 14.18 million shares. Additionally, private investment in public equity (PIPE) investors own 4 million shares.
- The streaming industry is highly competitive, so Anghami will have to compete with names like Spotify (NYSE:SPOT) and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Play.
- Besides competition, other risks include changes in consumer preferences, a reliance on third-party licenses, and declining ad-supported free service users.
- Any negative impact to ad-supported free users will likely affect Anghami’s revenue. This is because Anghami’s premium users are often converted from ad-supported free users.
- At the end of 2020, Anghami had 18.3 million active users and more than 9 billion streams during the year.
- The streaming company utilizes artificial intelligence from nine years of user data to “understand user trends, predict user behavior, and invest in growth areas that we believe are likely to generate the highest return on investment.”
- One of Abu Dhabi’s investment arms, the Abu Dhabi Investment Office (ADIO), has committed roughly $16.5 million to support the growth and development of Anghami.
- Finally, Anghami believes that the music-streaming industry is still in its early stages. In 2020, the International Federation of the Phonographic Industry (IFPI) reported that there were 443 million paid users in the music streaming industry. Anghami believes this figure has room to grow since there are 3.8 billion smartphone users worldwide.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.