Animoca Brands Eyes Hong Kong, Middle East for IPO

Animoca Brands, a leading force in the cryptocurrency gaming and metaverse sectors, has announced plans to go public early next year.

This decision follows its exit from the Australian Securities Exchange (ASX) in 2020. The company is currently considering either Hong Kong or the Middle East, regions known for their favorable stance towards cryptocurrency.

Animoca Brands to Go Public

Yat Siu, co-founder and executive chairman of Animoca Brands, indicated that the public offering could occur as early as 2025. The firm has started discussions with investment banks but has yet to finalize an adviser or a specific location.

This move will mark the company’s second attempt at going public. It follows its delisting from the ASX due to governance concerns and its involvement with crypto-related activities.

Animoca Brands’ initial delisting was prompted by issues flagged by the ASX in December 2019. These questions questioned the company’s governance and use of simple agreements for future equity (SAFEs) in its subsidiaries. Despite submitting a 39-page report to address these concerns, the ASX delisted the company on March 9, 2020.

Following its delisting, Animoca Brands continued operations without significant disruption. Shareholders retained ownership of their shares through the company’s share registry, Automic, and had the option to sell shares privately. Animoca Brands declined to buy back shareholder shares, citing the absence of a shareholder mandate.

Yat Siu later described the ASX delisting as a “blessing.” He noted that the regulatory framework in Australia would have limited the company’s growth. This perspective was shared in an April 2022 report, where Siu highlighted the restrictive nature of the ASX regulations.

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Animoca Brands, valued at $5.9 billion as of its last fundraising round in 2022, continues to explore avenues for expansion and shareholder value creation. The company’s upcoming public offering aims to secure a platform that aligns with its activities in the GameFi and metaverse spaces.

As Animoca Brands prepares for its next public listing, the choice of location will be crucial. Both Hong Kong and the Middle East offer regulatory environments that support cryptocurrency ventures, promising a more accommodating home for the company’s ambitious plans.

Animoca Brands’ journey reflects the challenges and opportunities within the cryptocurrency gaming and metaverse sectors, highlighting the importance of regulatory alignment for growth and success.