ANGH Stock: Why Did Anghami Inc Soar by 162% Yesterday?

By Kirsteen Mackay

Published:

Arab music streamer Anghami Inc (NASDAQ: ANGH) stock is plummeting today after soaring in yesterday's session. What's happening?

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Was ANGH Stock subject to a short squeeze?

Anghami Inc (NASDAQ: ANGH) went public this week via SPAC after a merger with Vista Media. Yesterday the ANGH share price soared over 160%, despite being halted several times during the session.

SPAC companies have a complex structure that often involves early investors redeeming their shares for cash during or shortly after IPO. That may be what happened here, resulting in a short squeeze. 

Following the merger, the company has 25,768,967 ordinary shares issued and outstanding, 10,947,800 warrants to purchase ordinary shares at an exercise price of $11.50 per share issued and outstanding and 500,000 warrants to purchase ordinary shares at an exercise price of $12.00 per share issued and outstanding.

ANGH stock is down by approx. 40% in early trading on Friday.

What is Anghami?

Founded in 2012, Anghami is the first legal music streaming platform and digital distribution company in the Arab world. 

It launched in November 2011 in Lebanon, providing unlimited Arabic and international music to stream and download for offline mode.

The company was founded by Edgard Maroun and Elias Habib and is headquartered in Abu Dhabi, United Arab Emirates. 

We offer more than 57 million songs to more than 70 million registered users with close to 9 billion streams per year as of December 2020. We currently monetize our service through both subscriptions and advertising. Our Premium service users numbered 1.42 million and our Ad-Supported free service users were 7.14 million as of December 31, 2020.

ANGH Stock: $17 Price Target from The Benchmark Company

Analyst Matthew Harrigan of The Benchmark Company, LLC initiated coverage of ANGH stock with a $17 share price target. 

Financial Metrics Today

  • Market Cap: $909m

  • Fully Diluted Shares Outstanding: 38.2m

  • P/BV: 4

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IMPORTANT NOTICE AND DISCLAIMER

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Kirsteen Mackay does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Kirsteen Mackay has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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