Iroko TV to raise fund at London exchange
…targets diaspora markets as West African currencies weaken
Considering the need to maintain its high-quality movie contents and world-class production, Iroko TV, West African film-streaming service, is set to list on London Stock Exchange’s Alternative Investment Market to raise the needed funds.
The listing, which is expected to take place within one year from now, according to Jason Njoku, CEO, Iroko TV, is aimed at raising between $20m and $30million and also expected to boost the value of Iroko’s business between $80m and $100m.
Speaking further, Njoku, who holds a stake of 18 percent in the debt-free company, which holds the world’s largest online catalogue of Nollywood films, disclosed that engagements with potential brokers would start soon.
Meanwhile, the film-streaming service company is shifting from its West Africa markets, particularly Nigeria, Ghana and Côte d’Ivoire to the diaspora markets in Europe and North America due to the persistence in the weakening of currencies across the region and low purchasing power occasioned by the covid-19 pandemic.
He lamented that consumer confidence in the West African markets has collapsed, with the macro dominating Africa because of the impact of covid-19, which worsened the situation in some ailing economies in the region.
Going by the shift to some diasporic markets, Iroko TV hopes to access smaller, but more affluent markets.
It would be recalled that Iroko raised its subscription prices in December 2020 in Nigeria and Ghana amid earlier price hike in response to the weak currencies and persisting devalue of the Naira.
Moreover, when the company started about six years ago, its annual subscription fee was N3,000 about $18, but the persisting devaluation of Naira to about $7.5 now has greatly impacted the business, Njoku decried.