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

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 . The transaction includes a $30 million commitment from UAE financial firm Shuaa Capital 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, 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.