News blog

MySQUAR Ltd

  • BY: Andrew Hore |
  • POSTED: 01/07/2015 |

Myanmar-based social media platform developer MySQUAR Ltd raised £1.67m at 10p a share. 

MySQUAR was valued at £18.5m at the placing price. Existing shares had previously changed hands at a valuation of around $23m (£14m). The share price fell to 9.88p at the end of the first day of trading.

The cash will be used to finance the company’s first mover advantage and build up its user base. Four network operators are going to invest $18bn in their networks in Myanmar over the next few years and there is a lack of local language-based content. Chief executive Eric Schaer says an AIM quotation will give commercial partners more confidence and put the company in a better negotiating position.

Cheap Chinese phones are expanding the content market in Myanmar, where mobile penetration was 10% of a population of 55 million in 2013. Nearly half of the population is under 24 years old. New management was put in place last year and user numbers are growing. MySQUAR says that it costs 10-20 cents to add a new user to the MyChat mobile chat app, which also offers games and other digital goods. There were 574,200 users by 17 April 2015 and MySQUAR hopes to increase this to 1.15 million by the end of the year.

MySQUAR intends to generate revenues from sales of digital products to users and through brand advertising by the likes of Coca Cola – MySQUAR can provide valuable consumer data. There are plans to add a news feed and job portal. Longer-term, MySQUAR could generate commission on transactions by linking up with a payment services company.

The company is not expected to generate cash for a few years because it will take time to monetise the user base so investors need to be patient.

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds