Temasek’s wholly-owned investment firm 65 Equity Partners has invested S$150 million ($106 million) in Singapore-based immersive entertainment firm Cityneon Holdings, per an announcement.
Prior to this transaction, Cityneon raised a S$235 million round in April 2021, which valued the company at over S$1 billion.
Cityneon’s existing investors include CITIC Capital, Pavilion Capital, EDBI, Qatar’s Doha Venture Capital and SeaTown Holdings International.
The company earlier told Mergermarket that it planned to acquire additional intellectual properties (IPs) as well as bolt-on purchases, which would require an estimated capital expenditure of $100 million in 2023.
Cityneon said in its Wednesday statement that it will use the fresh capital for growth strategies globally, including expanding into new markets, acquiring new IPs, building up technological capabilities, establishing new and profitable lines of businesses, and shoring up its balance sheet.
The company said it was working with the governments of Peru and Egypt to present two original artifact IP experiences, signing two new global IPs with Warner Bros Themed Entertainment, and entering into a strategic partnership with the Qatar Free Zones.
Partnerships with other studios include The Walt Disney Company, Marvel Entertainment, 20th Century, NBCUniversal and Lionsgate.
Cityneon also announced its rebranding to NEON, which its executive chairman and CEO Ron Tan described as representing the company’s vision of “the convergence of the physical and digital space, transcending geographical limitations and creating a fully integrated global experience”.
“This investment aligns strategically with our mandate of supporting high growth, leading businesses led by founders and entrepreneurs, to help them scale and fulfil their growth aspirations, as well as facilitating their eventual public listing,” said Tan Chong Lee, CEO of 65 Equity Partners.
Tan earlier spoke with Mergermarket that Cityneon would need to explore debt and equity funding options, in both the private and public markets. Therefore, a re-listing on the Singapore Exchange (SGX) is expected in the second half of 2023.
The company was taken private in 2019 through a S$318 million offer by a consortium led by Tan and individual investor Johnson Ko.