Taiwan’s live streaming platform M17 cancels IPO, raises $35m in private round

Photo by Nicholas LB on Unsplash.

Jeffrey Huang, the veteran rapper who pioneered Taiwan’s hip-hop scene, publicly lashed out at two investment banks after his tech startup shelved its U.S. initial public offering.

M17 Entertainment Ltd., the live-streaming platform that Huang co-founded, said in a statement dated Wednesday it’s deferring its listing due to unspecified “settlement issues” with some investors. In a post on his verified Facebook page, Huang used a four-letter expletive to express his displeasure with Citigroup Inc. and Deutsche Bank AG, the lead underwriters of the sale.

The Facebook post, which was visible late afternoon local time Wednesday, had been removed by that evening. Huang didn’t specify what he believed the banks did wrong. Representatives for Citigroup and Deutsche Bank declined to comment.

Huang rang the opening bell at the New York Stock Exchange on June 7, the day M17’s shares were slated to begin trading. The Taipei-based company had earlier said it was pricing its IPO below the marketed range to raise about $60 million. The trading debut was postponed, and M17 announced several days later it was halting the deal.

M17 has opted to raise $35 million in a private fundraising round from new and existing investors, including Infinity Venture Partners and Global Grand Capital, it said in Wednesday’s statement. The new capital, which will be used for expansion in Japan and other markets, will allow M17 to retain its flexibility as a private company, according to the statement.

LA Boyz

“We are very appreciative of our investors for providing the additional capital,” M17’s group chief financial officer, Shang-hsiu Koo, said in response to Bloomberg queries Thursday. “Also wanted to thank the entire deal team for their hard work. However, given the delay, we felt it was best to remain private near term and focus on growing our business.”

The listing would have added to the $3.8 billion in U.S. IPOs of Asian companies this year, according to data compiled by Bloomberg. A representative for NYSE declined to comment. M17’s Koo said Huang has no further comments at this time.

Huang, 45, began his entertainment career in the early 1990s and founded his own music label in 2003. The artist, who is M17’s non-executive chairman, was a member of Taiwanese music groups LA Boyz and Machi and has released more than 15 albums. He owns a 17.3 percent stake in M17, according to its IPO prospectus.

M17’s live-streaming platform, which launched in 2015, had an average of 1 million monthly active users in the quarter ended March, the prospectus shows. The company also runs a Tinder-like dating app called Paktor and provides offline matchmaking services in Singapore and Taiwan.

Vertex Venture Holdings Ltd., a unit of Singapore state investment company Temasek Holdings Pte, is among M17’s investors, the prospectus shows.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.