OkCoin founder, Star Xu, is seeking an Initial Public Offering (IPO) for his firm by buying a larger share in a Hong Kong-listed company.
The crypto exchange guru, Xu also known as Xu Mingxing, is seekinh approval of the Hong Kong Stock Exchange (HKEX) enable him buy a 60 percent stake in a construction engineering firm known as LEAP Holdings Group Ltd.
Through his company OKC Holdings Corp., Xu is aiming to purchase approximately 3.2 billion shares of the company for HK$0.15 (around $0.02) per share. The acquisition in total, if approved, would cost more than $60 million.
However, while the HKEX is yet to give its conscent on the proposed acquisition, an eventual approval, would provide a route for OKCoin to become a public company in Hong Kong via a back-door listing; cutting short a rather longer process it would have gone through by applying for an initial public listing (IPO) and jumping through all the necessary regulatory hoops.
The best bet it seems is to acquire an already listed firm on the HKEX.
Recall that in August, 2018, crypto exchange Huobi took a similar step, becoming the largest shareholder of a HKEX-listed firm known as Pantronics Holdings for around $70 million.
More so, many major firms in the crypto space, specifically mining companies Bitmain, Canaan and Ebang, have sought to make similar moves like OKCoin, but seem to be making little progress with the HKEX.
While, Bloomberg reported at the beginning of the year that Canaan is now seeking to IPO in New York despite allowing its application expire in HKEX after delays in approval, with an insider hinting CoinDesk in December that the stock exchange was “hesitant” to approve the offering for Bitmain.