Blockchain Firm Diginex Headed for NASDAQ Listing via Merger
The Hong-Kong based startup will be able to go through a backdoor listing, through an upcoming merger with 8i Enterprises Acquisition Corp.
Diginex, a Hong-Kong based cryptocurrency startup, will go for a NASDAQ listing soon, based on a merger with 8i Enterprises Acquisition Corp. The deal will value Diginex at around $276 million, including debt, reported Bloomberg.
While the deal would still require the approval of the US Securities and Exchange Commission, Diginex will be able to go public on NASDAQ without the technicalities of an IPO. The potential for a back-door listing has made other companies such as OKCoin and Bithumb to seek an acquisition of an already traded public entity.
Under the agreement, i8, or JFK, will remain listed on NASDAQ, changing its name to “Diginex Limited”. Diginex shareholders will receive 20 million ordinary JFK shares valued at $10.
Cryptocurrency startups rarely seek listing on traditional exchanges. So far, one of the biggest IPOs promised failed after Bitmain lost its appeal during the bear market. Bitmain instead relied on private rounds of funding.
But as the crypto space grows, additional startups are aiming to offer side services, without being the issuer of their own digital asset. Diginex aims to offer a trading tool for operating in digital assets.
Richard Byworth, CEO of Diginex, said, “Diginex has been built to provide the financial services infrastructure required to take digital assets and blockchain technology to the next level of adoption by institutional investors and corporations globally. We believe that this exciting transaction will enhance our broader market visibility as we further roll out our global platform including our exchange infrastructure, product offering, licenses and market expansion into key geographies around the world.”
So far, Diginex has secured $63 million in private rounds of financing, completed in early 2018. The firm has also acquired two smaller companies in the crypto space, Altairian Capital, and MemoryX Blockchain Ltd.