Noteworthy Debut of HashKey on the Hong Kong Stock Exchange
Hong Kong’s leading cryptocurrency exchange, HashKey, recently marked its entry into public trading with an exceptional debut on the Hong Kong Stock Exchange (HKEX). This followed a spectacularly successful Initial Public Offering (IPO) that generated about $206 million in funds.
Listing Details on HKEX
Wednesday marked the official listing of HashKey Holdings shares on the main board of the HKEX. The opening price tag was set at 6.7 Hong Kong dollars, equivalent to approximately $0.86. This monumental event exemplifies the first occasion a publicly traded digital asset company in Asia has entered the public space through an IPO in Hong Kong.
As proclaimed by the HashKey Group, this development is a noteworthy step into the next phase of the company’s growth. In addition to securing its global expansion, it also builds a robust foundation for its far-reaching strategic initiatives.
The Success of HashKey’s IPO
Launched initially on December 9, HashKey’s IPO received an overwhelming response from both institutional and retail investors. The company managed to sell a total of 240 million shares for 1.6 billion HK$ ($206 million), confirming an enormous demand in the market for its shares as per the company’s HKEX filings.
Furthermore, the Hong Kong-based offering exceeded expectations by about 394 times with 24 million shares sold. Meanwhile, the international IPO saw a surge of 5.5 times the amount of stock on offer, selling an impressive 216.5 million shares.
Cornerstone Investors and Rollout
Making this venture even more special were the nine cornerstone investors that the IPO attracted. These included notable names like Cithara Global Multi-Strategy SPC, UBS AM Singapore, Fidelity, and CDH, among others. Cithara and UBS emerged as the titleholders of the largest investors, allocating around 17.5 million shares and 11.7 million shares, respectively.
Observations from Initial Trading and Market Reaction
Despite some fluctuations during the morning trade where the stock briefly surged by 5% above its opening price to 7.1 HK$ ($0.91), it went on to slide to as low as 6.1 HK$($0.78). Trading continued, with the stock price mellowing just below its IPO price during the afternoon trading session at 6.5 HK$ ($0.84).
Future Hopes and Comments from CEO
Undeterred by the mixed market reaction, HashKey’s Chairman and CEO, Xiao Feng, believes that listing on the HKEX beginning is a testament to the company’s increasing sense of responsibility. According to him, HashKey, as a company deeply grounded in Hong Kong, understands the importance of compliance to achieve long-term success and sustainable growth. Pledging to reinforce its infrastructure, security, and compliance, the CEO reiterated the company’s commitment to its long-term vision.
Entry of Crypto Companies into Public Trading
The unique entry of HashKey into the public market is part of an ongoing trend among crypto companies. Several other similar companies have done so in the preceding years, with stablecoin issuer Circle being a prime example. Other significant crypto exchanges such as Bullish and Gemini have also made their move to go public. The renowned US crypto exchange, Kraken, had even declared the confidential filing of a draft registration statement for a proposed IPO back in November.
In conclusion, the listing of HashKey on the HKEX marks a significant landmark in the crypto space, especially for Hong Kong. This development signifies the growing acceptance of cryptocurrency and blockchain technology in conventional financial markets and sets the stage for further growth and expansion in the future.
