African music service, Mdundo.com, announced that its offer of DKK 40.0 million new shares was oversubscribed by 111%, a total of DKK 84.3 million ($13.6 million)
Founded in November 2012, Mdundo.com is an African music service with 5 million monthly active users and 20 million monthly downloads. It was founded by the African seed investment fund 88mph to provide a platform for African artists to sell their music.
According to CEO Martin Nielsen, Mdundo.com: “We have known from the beginning that we had a strong investment case, and the many investor conversations throughout the subscription period have reinforced us with this. Despite only marketing the IPO in Denmark, we have received inquiries from investors in Sweden and the rest of the world. However, they have had limited opportunities to subscribe for shares. We are therefore now looking forward to investors outside Denmark also being able to trade the share from Friday and onwards”.
The music service is available to users worldwide but Mdundo has its business focus in 15 countries in sub-Saharan Africa, including a commercial market focus in Tanzania and Kenya, where Mdundo started in 2013, and a marketing focus in Nigeria, Ghana and Uganda.
The tender was closed as scheduled on 28 August at 23:59. Mdundo.com has received subscriptions from 2,914 investors for a total of 8,428,731 shares. The company’s offering of up to 4,000,000 new shares at an offer price of DKK 10.0 per share was, thus, fully subscribed, which gives Mdundo.com gross proceeds of DKK 40.0 million. and a market value of DKK 102.0 million.
The first day of trading on Nasdaq First North Denmark is expected to be 4 September 2020 under the symbol “MDUNDO”.
