Sep 11, 2020 15:27 UTC
Sep 11, 2020 at 15:27 UTC
Diginex Converting to be Public is about further, a Nasdaq Ticker Symbol
Blockchain services firm Diginex could be a publicly-traded company by September 23.
The firm’s backdoor listing on Nasdaq is happening further swiftly than a regular initial public offering (IPO). Still, the company – which is behind the EQUOS.io crypto exchange is cautiously making sure it’s flush with capital before it lists.
Diginex CEO Richard Byworth held the firm’s public listing would give it more transparency than other exchange operators that maltreat clients with poorly structured liquidations and exorbitant fees.
“Some of these guys are offering a ridiculous 250-times levered product,” Byworth supposed. “At that point, it’s quite easy to be able to map where liquidations can occur if the value of bitcoin gets to that level.”
The exchange will still depend on other private exchanges as references for pricing data on levered products. Even, Byworth said public filings would give non-crypto traders additional confidence to enter the market.
Diginex is not the solitary crypto exchange company to be swish into the public markets. INX has already launched its initial public offering on the Ethereum blockchain, which retail and institutional investors can follow on Etherscan.
Hong-Kong-based Diginex’s path to the Nasdaq involves plans to merge with openly traded 8i Enterprises Acquisition Corp., a British Virgin Islands-based “blank check” company, afterwards a final shareholder vote later this calendar month.
If altogether goes as planned, Diginex should bypass many of the typical regulatory barriers associated with an IPO & list on Nasdaq around September 23, supposed Byworth, a former investment banker.
Earlier this week Diginex announced $20M in funding from four family offices & one hedge fund in Asia & Europe. As part of the acquisition deal, i8 agreed to redeem at least $15 million to add to the private raise, giving Diginex a reserve of $35M.
One of the firm’s private equity investors presented the firm to several special-purpose acquisition company (SPAC) managers earlier Diginex found i8 in May of last year, Byworth said.
“It did take some time for the SEC to get their heads around it,” he told CoinDesk in an interview, referring to the Securities & Exchange Commission.
Byworth said i8 expects to exceed $15M easily. “That round goes all the way to this weekend … when we’ll know how many investors redeemed & how much cash is coming to us,” he added.
While Diginex’s EQUOS.io is undoubtedly not a “top-tier” exchange, going public is noticeable; the Nasdaq listing would increase its profile among investors and potential customers, supposed George Zarya, CEO of digital asset services firm Bequant. (Diginex competes with Bequant, which offers crypto safekeeping, multi-venue trading & an investment banking advisory arm constructed in the U.K.)
While private equity will likely continue to be the primary source of funding for crypto startups, the chief reason for using SPACs is the speed, and there will probably be additional cases of it, Zarya supposed.
From today until the company lists, Diginex will be focused on making sure investors understand the company’s business model.
“This is a critical inflexion point for us,” Byworth told CoinDesk, adding:
“It’s imperative that we make sure investors understand the value proposition of Diginex and ways we’ve been designed to produce the best outcomes for the industry.”