Crypto Exchange HashKey Eyes US$2.47 Billion Market Cap in Hong Kong IPO
By Jason ChauCrypto exchange HashKey Holdings is seeking to list in Hong Kong via an initial public offering that could give it a market valuation of US$2.47 billion.Hong Kong-based HashKey, which says it is the largest digital asset manager in Asia in by asset size, plans to raise a maximum of about US$215 million.It is the latest in a string of companies to raise funds in the city, which has become one of the world's busiest IPO hubs.The offering also comes amid a flurry of activity in the sector in Asia, with major exchanges looking to expand in the region as digital-asset trading becomes more mainstream.Earlier this week, Robinhood Markets said its preparing to enter Indonesia as it grows in Southeast Asia, and is pursuing a brokerage license in Singapore. Coinbase recently announced an investment in CoinDCX, a crypto exchange in India.Regulatory activity in the financial hubs of Hong Kong and Singapore suggest wider adoption too.Hong Kong has granted virtual asset trading licences to 11 operators since 2020, while Singapore has so far issued 36 major payment institution licences to digital asset platforms. The Singapore exchange also recently launched bitcoin and ethereum perpetual futures trading.In a filing Wednesday, HashKey said it plans to issue 240.6 million shares at HK$5.95 to HK$6.95 each. At the top end of the range, that would give it a market capitalization of HK$19.21 billion.HashKey is backed by venture capital firm Gaorong Ventures, an early investor in Chinese startups like Meituan and Pinduoduo. It has secured UBS and existing shareholder Fidelity as cornerstone investors.The trading platform, which also develops blockchain technology, plans to use the IPO proceeds to invest in technology and infrastructure, and for market expansion, among other purposes.Shares are expected to start trading on Dec. 17.J.P. Morgan and Guotai Haitong are among the banks advising on HashKey's offering.Write to Jason Chau at [email protected]