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M17 is content with New York listing
Posted on Monday, 14 May 2018 11:50
The Taiwanese parent of Singaporean location-based dating and networking mobile application Paktor is trying its hand at an initial public offering on the New York Stock Exchange.

Cayman Islands-incorporated M17 Entertainment has submitted a preliminary prospectus for a sale of American depository shares with a USD 115.00 million placeholder.

The group has provided underwriters, comprising Citigroup, Deutsche Bank Securities, Daiwa Capital Markets and Mizuho Securities, with an overallotment option.

It is yet another example of an Asian live streaming company seeking a listing in the US via an offshore-incorporated vehicle, coming on the heels of IQiyi and Huya, both headquartered in China, this year alone.

M17 claims to operate the largest such platform by revenue in developed Asia, defined as Taiwan, Japan, South Korea, Singapore and Hong Kong, with a market share of 19.2 per cent in the first quarter of 2018.

The group’s live streaming app, 17 Media was launched in July 2015 and, as of 31st March 2018, had 33.30 million registered users, compared to 32.40 million and 29.30 million, as of 31st December 2017 and 2016, respectively.

It also operates two main dating apps - Goodnight and Paktor, the latter of which opened for business in 2013 -and they had a total number of registered users of 14.60 million at the end of March (December: 13.90 million).

According to the prospectus, M17 is a holding company resulting from of a series of deals that completed in March 2017 between Machipopo, being the live streaming entity, and Paktor.

The integrated platforms had 47.90 million registered users, as of 31st March 2018, and 1.70 million average monthly active users in calendar Q1 2018.

M17 lets its customers share photos, upload videos and interact with other streamers in real-time but has its heart set on further development.

Proceeds will bankroll content research, including subject matter generated in a studio or by professions on the platform and other new formats, as well as geographical expansion in Japan and other markets.

Any remaining money will be used for merger and acquisition opportunities, though the group has not identified any targets, and working capital.

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