Star Xu, the founder of cryptocurrency exchange OKCoin, may well be looking for a possible backdoor IPO for his company by shopping for a majority stake in a Hong Kong-mentioned organization.
On Jan. 10, Xu (beneath his true name Xu Mingxing) submitted with the Hong Kong Stock Exchange (HKEX) for approval to obtain a 60 percent stake in a construction engineering company named LEAP Holdings Group Ltd.
Via his organization OKC Holdings Corp., Xu is aiming to order somewhere around 3.2 billion shares of the organization for HK$.15 (close to $.02) per share. In full, the acquisition, if approved, would charge a lot more than $60 million.
To prevent the information impacting LEAP Holdings’ stock rate, the company is currently suspended on the HKEX.
Whilst the effort has nevertheless to be approved by the stock exchange, the thriving order of the stake could present a route for OKCoin to become a community organization in Hong Kong by way of a again-door listing. That is, instead than go by means of the method of implementing for an first community listing (IPO) and leaping by means of all the important regulatory hoops, they would basically obtain a company by now mentioned in Hong Kong.
Past August, crypto exchange Huobi took a related step, becoming the premier shareholder of a HKEX-mentioned company named Pantronics Holdings for close to $70 million.
Other big companies in the crypto area, specifically mining corporations Bitmain, Canaan and Ebang, have submitted for IPOs in the similar jurisdiction, but feel to be building small progress with the HKEX. Canaan has now allow its software expire, even though a HKEX insider informed CoinDesk in December that the stock exchange was “hesitant” to approve the featuring for Bitmain.
A Bloomberg report early this month instructed that Canaan is now looking for to IPO in New York, but almost nothing has been formally created community to day.
Wolfie Zhao contributed reporting.
HKEX graphic by way of Shutterstock