SHARE PUNT OF THE WEEK

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WHO IS IT?

MySquar is a social media, entertainment and payments app for internet users in Myanmar (formerly Burma), listed in the UK. Its services include mobile payment service MyPay, social media platform MyChat and it has a host of games including MyFish and Chakra Ninja.

WHAT’S THE LATEST?

Last month the business reported that registered user numbers had leapt 24pc since October to an incredible 7.5m. It also launched a game platform called Lucky Wingabar which will initially include five so-called casual games (those which can be played for just a short time). This week MySquar issued new shares to a loan note holder as part of a bid to raise capital. The business said the cash would be used to help develop new games and apps.

WHO BACKS IT?

The largest shareholder is Singapore private investment firm Rising Dragon, which invests in the technology, mining, property, finance and infrastructure industries. Non-executive director of the firm, Neil Osborn, has a 0.5pc stake. He joined last summer from previous directorships at publishing firm Euromoney and RBC Information Systems.

WHY YOU SHOULD INVEST

Social media, payments and gaming are areas which are rapidly moving onto smartphones all over the world. Take-up of new technology is often a lot quicker in developing economies too. The growth of this app has been impressive. Often the key to making this type of business a success is being a first-mover in the industry – think Facebook or Rightmove.

. . . AND WHY YOU SHOULDN’T

Tech firms can be cash-hungry and it can take a long time for profits to materialise – if they ever do. This is also a fiercely competitive area with hundreds of rival apps and very fickle consumers. Meanwhile, the fact MySquar is based in Myanmar could put some investors off. The US had sanctions in place on Myanmar until just last year and there is no telling with a new president in place if these could return.