Audioboom, the London-listed podcasting team, will on Wednesday announce the multi-million pound fundraising after determining to call off a long-running auction.
Sky Information has learnt that Audioboom Team, which counts the wealthy home entrepreneur Nick Candy among the major shareholders, has agreed to market a 10% stake to an Asian-based investor.
City resources said the stake was being positioned with One Nine Two, the Singapore-based company focused on technology-oriented development companies.
They added that Philip Antonioni, the controlling investor in a single Nine Two, was paying 225p-a-share for the Audioboom holding – reduced of more than 20% to Tuesday’s shutting price of 177. 5p.
The deal will raise roughly £3m for Audioboom, which plans to get the proceeds in developing authentic content as it moves towards the breakeven position in early 2021.
The particular placing comes eight months right after Audioboom was effectively put up available for purchase as part of a strategic review aimed at determining opportunities to accelerate its growth.
Audioboom has a market capitalisation of just £24m, making it the minnow by stock market standards, yet board members believe it is substantially undervalued by the public markets as marketers shift more of their spending in order to podcasting platforms during the coronavirus outbreak.
The company’s array of podcasts consist of content from The Spectator magazine, the previous rugby player Lewis Moody plus Sue Perkins, the broadcaster.
In total, it has more than thirteen, 000 ‘content channels’, which are believed more than 60m times every month.
The sale process can be understood to have drawn interest from the number of multinational media companies, yet did not yield a firm offer in a price that was attractive to directors or even shareholders, according to insiders.
In February, Audioboom announced that this had secured a $4m mortgage from a vehicle owned jointly simply by Candy Ventures and Michael Tobin, the podcaster’s chairman.
Mr Tobin transformed Telecity, the data centre operator, into a multibillion pound company, before stepping down within 2014.
The company stated in July that half-year profits had increased by 20% in order to $11. 8m, which it mentioned represented an outperformance compared with the united states podcasting industry.
The newest developments come more than two years right after Audioboom came close to collapse adopting the abandonment of a £130m reverse takeover of Triton Digital, an American competitor.
Many media experts believe that the podcasting sector has started a long-term phase of fast growth amid shifting media usage habits.
Earlier this year, Spotify bought The Ringer, a sports activities podcaster boasting more than 100 mil monthly downloads.
Audioboom could not be reached for discuss Tuesday evening.