Private and professional investors oversubscribed to Mdundo.com’s listing on Nasdaq First North Growth Market Denmark by 111%. The music download and streaming service received subscription orders worth DKK 84.3 million ($13.4M) against an offer of DKK 40 million ($6.3M).
Mdundo.com received subscriptions from 2,914 investors for 8,428,731 shares at the between August 17, the admission of its trading in Nasdaq Denmark to August 28, when the tender closed. Upon announcement of its IPO, the company offered up to 4 million shares at DKK 10.0 per share, which fully subscribed giving the company DKK 40 million.
Mdundo’s market value now stands at DKK 102 million after completing the offer facilitated by Danske Bank, the settlement agent.
Company CEO Martin Nielsen attributes the oversubscription to the company’s strong investment case, backed by multiple investors throughout the subscription period.
“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,” says the CEO in a press release.
Mdundo Shares to start Trading on September 4
Mdundo.com shares will begin trading on the Nasdaq First North Growth Market Denmark on September 4 as “MDUNDO”, after completing its Capital increase with the Danish Business Authority on September 3. The beginning of trading depends on whether Nasdaq Denmark approves the company’s application for admission.
“We are therefore now looking forward to investors outside Denmark also being able to trade the share from Friday and onwards.”
Following the investor interest evident in the oversubscription, mdundo.com is yet to allocate orders of up to 500 shares. The music platform gave orders of between 500 and 25000 shares 500 shares, with 28.4% receiving more than 5000 shares.
Mdundo is a music streaming and download service for Africa with millions of users from over 9 African countries.