17Live’s debut marks Singapore’s first completed SPAC deal

Photo credit: 17Live

Global livestreaming platform 17Live has listed on the Singapore Exchange (SGX), marking the city-state’s first completed SPAC transaction.

The firm merged with blank-check company Vertex Technology Acquisition Corporation (VTAC), and the December 8 listing brings the joint entity’s estimated market value to around S$887 million (US$663 million). This is lower than the previous estimation of US$730 million to US$846.8 million.

VTAC, which is sponsored by Temasek-backed VC fund Vertex Holdings, was the first SPAC firm to list on SGX in January 2022. Back then, VTAC had an issue price of S$5 (US$3.74) per share.

In the first half of 2023, 17Live’s revenue was down 25% year on year to US$151 million. The company predominantly generates revenue through sales of virtual points.

Kenta Masuda, the global CFO of the company, attributed this decline to 17Live’s efforts to enhance return on ad spend in Japan, resulting in a reduction in monthly active users.

Established in 2017 under the name M17 Entertainment, 17Live has a global presence with key markets such as Japan, Taiwan, the US, Hong Kong, Singapore, Malaysia, and the Philippines.

Anticipating substantial growth, 17Live projects the total addressable market for its livestreaming, live commerce, and V-Livers businesses to expand from approximately US$6 billion in 2022 to US$18 billion by 2027.

See also: Takeaways from Singapore’s landmark SPAC deal and its target company, 17Live

Currency converted from Singapore dollar to US dollar: US$1 = S$1.33.