Animoca plans for a public listing but has not decided on a location or a timeline, with Siu citing market status as a deciding factor.
Popular Hong Kong-based blockchain game software company Animoca Brands has plans for a public listing but no timeline. The firm’s chairman and co-founder, Yat Siu, recently said the timeline for its proposed initial public offering (IPO) depends on the “market’s status,” among other factors that may affect Animoca.
Siu said this to CoinDesk in Singapore, adding that the entire process will take time. The chairman confirmed that Animoca Brands is currently going through an audit, which he describes as a critical piece of the IPO. DFK Collins, a leading accounting firm in Australia, is handling Animoca Brands’ audit.
Previous Animoca Listing in Australia
Interestingly, Animoca Brands used to be publicly listed in Australia. On January 23, 2015, Animoca Brands was listed on the Australian Securities Exchange (ASX), but was delisted on March 9, 2020. According to an official ASX announcement, Animoca’s AB1 listing breached several rules despite “intensive efforts” to highlight the company’s listing obligations. The ASX says the shares lack adequate systems and controls, adding that it was not satisfied with measures Animoca took to fix the problem.
Reports suggest that Animoca’s delisting stemmed from regulatory problems that are not uncommon in the crypto industry. However, Siu said the delisting turned out to be “a blessing” for the firm because meeting the ASX’s requirements would have restricted company growth. Siu noted that the company was then able to make moves the ASX was previously uncomfortable with, or simply did not understand.
News of Animoca Brands IPO consideration has been discussed for months. According to reports, the plan is to go public in 2025 after the company successfully onboards an adviser. The company has reportedly spoken with several investment banks but has yet to choose.
There are also discussions about Animoca’s IPO location. According to a report, the company is considering Hong Kong and the Middle East. During a recent interview, Siu said Hong Kong is a strong contender in part because the city hosts Animoca’s headquarters. Another factor in favor of Hong Kong is the city’s drive towards becoming a crypto hub.
Rise in Hong Kong’s Crypto Status
The Global Cryptocurrency Adoption Index rankings recently published by blockchain data firm Chainalysis show that Hong Kong jumped the highest. The city moved from last year’s 47th spot to the current 30th. It also had the largest growth in crypto transaction value in East Asia, rising 85.6% year-on-year. The index considered data from crypto services, decentralized protocols, and centralized exchanges.
Chainalysis attributed this growth to Hong Kong’s support for cryptocurrency through a regulatory framework that contributes to institutional adoption. A new regulatory regime that supports crypto dealings lets Hong Kong stand out, whereas several other jurisdictions are not as supportive. In May, the city’s Securities and Futures Commission (SFC) announced finalized rules for retail crypto trading. From June, the agency began allowing licensed exchanges to sell digital assets to retail investors. However, trading is restricted to cryptocurrencies with large market capitalizations, like Bitcoin BTC $87 494 24h volatility: 0.9% Market cap: $1.74 T Vol. 24h: $27.57 B and Ether ETH $2 059 24h volatility: 0.4% Market cap: $248.65 B Vol. 24h: $11.89 B .
next