Spac talk returns with VTAC and 17Live
Sharanya Pillai
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.
17Live’s management will also be put to the test. The company had in fact attempted to list in New York in 2018 as M17 Entertainment, reaching the point where its management rang the opening bell. But in a shocking twist, the stock could not start trading, as an order book investor failed to pass the know-your-customer process.
The company has come some way since the debacle, and VTAC sees 17Live being “at its inflection point, backed by a strong management bench”. How VTAC shareholders vote on the combination will be interesting to watch – and we’ll bring you the details when that happens.
This past week, Garage correspondent Benjamin Cher also brought us the details of South-east Asia’s newest kid on the e-commerce block: PDD Holdings’ Temu. We’ll be watching just how much this disrupts incumbents Shopee and Lazada, and what this means for the region’s long-brewing e-commerce war.
In the meantime, have a great week ahead and happy online shopping!
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