Spac talk returns with VTAC and 17Live

SINGAPORE’S efforts to promote tech listings via special purpose acquisition companies (Spacs) could finally be bearing fruit. Last Monday, Vertex Technology Acquisition Corp (VTAC) proposed a business combination with livestreaming operator 17Live, at a S$1.2 billion valuation. 

The deal comes with a purchase consideration of up to S$925.1 million. 17Live’s chairman and co-founder Joseph Phua hopes to pursue growth in South-east Asia, with the company presently counting Japan and Taiwan as its key markets.

The listing will be a test of Singapore investors’ Spac appetite. Like many companies that list through these vehicles, 17Live is still in the red: it posted a US$51 million loss in FY2022, on the back of US$363.7 million in revenue. The company’s revenue model may also be rather unfamiliar to local retail investors – it takes a cut of the gifts received by livestreamers on its platform.