Singapore-incorporated social media company Fenix 360 Pte Ltd (Fenix360) has agreed to go public in the US through a merger with Malaysia-based blank cheque firm DUET Acquisition Corp.
The deal values the combined company, which is expected to trade on the Nasdaq in the first half of 2024, at $610 million, according to an announcement.
Under the business combination agreement, DUET will acquire 100% of the outstanding equity interest of Fenix360, an artist-centric, multi-genre social media platform that helps independent artists and creatives monetise their art.
The merger is the second deal for the Malaysian special purpose acquisition company (SPAC) since it raised $75 million last year by offering 7.5 million units at $10 each. It initially intended to prioritise the Asia-Pacific region as the geographical focus, excluding China.
“We believe that there is a large pool of quality initial business combination targets looking for exit opportunities with an increasing number of private equity and venture capital activities in certain regions, which provides us opportunities given what we believe are the limited exit options for mid-market companies in the region,” it said earlier.
In July 2022, DUET announced its first combination with Spain-based AnyTech365 at a $287-million enterprise value. The deal, however, was terminated in April this year.
About the latest acquisition, DUET co-CEO Dharmendra Magasvaran said the Singapore-based company’s unique value proposition provides both Fenix360 and DUET an opportunity to “reshape the creative and media space”.
“Tapping into the substantial digital advertising and digital commerce ecosystem will bolster Fenix360’s revenue generation abilities,” Magasvaran added.
The deal, which has been unanimously approved by the boards of directors of Fenix360 and DUET, is subject to approval by DUET’s stockholders and other customary closing conditions, per the announcement.
SPACs, also known as blank cheque companies, raise capital via traditional IPOs to acquire a privately held company. A merger with the publicly traded SPAC provides a private company with a cheap and fast listing route.
Lately, several Asian companies have taken a similar route to a public listing, by filing to merge with a SPAC, despite a lacklustre public market outlook and performance.
In August, VinFast merged with Hong Kong-based Black Spade Acquisition Company, which valued the Vietnamese electric vehicle maker at $23 billion at the time of its debut on Nasdaq.