Singapore's M17 abandons US IPO
M17 Entertainment, a Taiwan and Singapore-based media streaming company, has abandoned plans for a $60.1 million IPO in the US citing unspecified difficulties with some investors.
The company said in a statement that it intended to continue operating as a private business and had secured a $35 million round from existing backers including Infinity Venture Partners and Majuven, as well as Convergence Ventures and an entity known as Global Grand Capital.
M17 filed to list on the New York Stock Exchange in May and specified a targeted capital raise of up to $103.6 million the following month. In a release published last week, the company confirmed that it had lowered its offer price from a range of $10-12 per share to $8 per share.
Following the failed float, M17 said it expected to benefit from the flexibility of a private company as it expanded its business across Asia. Like the IPO, the current venture capital round is planned to support a push into Japan and other regional markets. Earlier this year, the company agreed to acquire a live streaming service in Japan for about $32.8 million with support from Infinity.
Prior to the latest VC round, Vertex Ventures was the company’s largest institutional shareholder with a 12.1% stake, while Infinity and KTB Ventures held 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.
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%.
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