Singapore's M17 Entertainment files for US IPO
M17 Entertainment, a Taiwan and Singapore-based media streaming company, has filed to list on the New York Stock Exchange.
The size and pricing of the offering was not disclosed in the initial prospectus. M17 plans to sell newly issued Series A shares, so it is unlikely that existing investors, including Vertex Ventures, Infinity Venture Partners, and KTB Ventures, will make partial exits through the IPO.
Vertex is currently the company’s largest institutional shareholder with a 12.1% stake, while Infinity and KTB hold 9.1% and 5.7%, respectively. All three investors backed a $40 million Series A round for the company last year alongside Yahoo Japan, Golden Summit Capital, and Majuven in support of a regional expansion drive.
Proceeds from the offering will be applied to growth of the business into Japan and other new markets. Last month, the company agreed to acquire a live streaming service in Japan for about $32.8 million with support from Infinity. The transaction is expected to close within the month.
M17 was formed last year through the merger of Singapore dating app operator Paktor and Taiwan live streaming company 17 Media. Paktor is considered a segment leader in Singapore, Taiwan, Vietnam and South Korea, and received a $32.5 million round led by K2 Global in 2016. 17 Media broadcasts live-streaming content for some 33.3 million registered users across the region.
M17 recorded a net loss of $22 million in 2017, compared to a $16.4 million loss in 2016. Revenue improved from $3.7 million in 2016 to $79.5 million in 2017, with the company citing a number of operational improvements and geographic expansions, notably Japan. M17 claims to have the largest live streaming platform in developed Asia by revenue with a market share of 19.2%.
“Japan is the largest media and entertainment market by advertising revenue in Asia and exerts strong cultural influence in Asia,” the company said. “We believe that we have a strong understanding of the Japanese market and culture, which has allowed us to achieve a strong position in the market in only a few months since we commenced operation in Japan in August 2017.”
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