BEIJING - Singapore-based mobile app developer Asia Innovations Group said on Friday it would go public through a merger with a blank-cheque firm in a deal that values the combined entity at US$2.5 billion (S$3.6 billion).

The move by the group to merge with special purpose acquisition company (Spac) Magnum Opus Acquisition would bring estimated gross proceeds of US$200 million in cash, which Magnum Opus raised through its own initial public offering in May 2021.

Asia Innovations Group, which runs live-streaming app Uplive and e-commerce platform Hekka, is also targeting up to US$150 million from an additional capital raising, it said in a statement. The funds will support growth of its products as well as acquisition opportunities.

The transaction is expected to close in the first quarter of 2023, pending regulatory approvals, it added.

Spacs are shell firms that raise money from institutional and retail investors through market listings and the money is put in a trust for the purpose of merging with a private company and taking it public. REUTERS