– Singapore’s first-ever SPAC listing is a livestreaming company called 17LIVE, which allows users to interact with streamers and spend money on virtual gifts.
– The Singapore Exchange hopes that SPACs will attract more companies to its listing market and compete with Hong Kong and the US.
Well, isn’t this a hoot? Singapore’s first-ever listing through a SPAC merger is an Asian livestreaming company known as 17LIVE. It’s like the financial equivalent of having your first kiss with a movie star. Sure, it started with a bit of a stumble – the share price dropped 2.06% on debut, but that’s not going to slow down this SPAC parade.
Here’s the kicker though, 17LIVE isn’t a run-of-the-mill livestreaming platform. No sir. This bad boy lets users interact in real-time with streamers and send them virtual gifts. It’s like throwing money at your TV, but instead of breaking it, you’re supporting your favorite streamer. A whopping 16% of 17LIVE’s monthly active users spend money. That’s around 13.92 per user a month, which in the grand scheme of things is a small price to pay for a personalized digital experience.
Of course, we can’t forget about the virtual idols, those computer-generated characters designed to resemble real people. In Japan, the market for these digital heartthrobs is expected to skyrocket from $630.7 million in 2022 to a staggering $3.86 billion by 2027. I guess it’s true what they say, there’s no accounting for taste.
But let’s back up a second. What’s this SPAC business all about? Well, special-purpose acquisition companies, or SPACs for those in the know, are shell companies that raise capital through an initial public offering (IPO). They then use this cash to merge with a private company, effectively taking it public. It’s a faster and potentially more affordable alternative to a traditional IPO, and it’s quickly gaining popularity across Asia.
This debut listing is quite a big deal for the Singapore Exchange, which has been trying to reinvigorate its listing market. In the past decade, they’ve had more companies running for the hills than setting up shop. Now, with the introduction of SPACs, Singapore is hoping to attract more firms to its financial hub, giving the giants in Hong Kong and the US a run for their money.
The timing, however, might raise a few eyebrows. With the global economy dancing on a knife’s edge, thanks to high inflation, interest rate hikes, and volatile markets, one might ask why 17LIVE chose now to go public. Well, as the CEO of Vertex Holdings, the blank-check firm behind the merger, eloquently put it, “What is up can never go up forever, right? … what is down cannot be down forever, too.” So, folks, buckle up and enjoy the ride. As the world of finance continues to spin, SPACs just might be the new black.