Following its delisting from the Australian Securities Exchange (ASX) in 2020, Animoca Brands is now exploring listing options in either Hong Kong or the Middle East, regions known for their cryptocurrency-friendly regulations.
Yat Siu, co-founder and executive chairman of Animoca Brands, revealed in an exclusive interview with BeInCrypto that the public offering could take place as early as 2025. The move aims to attract greater institutional interest and support the broader adoption of Web3.
“Publicly listed companies can scale more effectively, and we believe that listing Animoca Brands in a suitable market will catalyze growth and expansion across the entire Web3 ecosystem, beyond our own operations,” Siu commented.
The company has initiated talks with investment banks but has not yet selected an advisor or finalized a listing location.
“Hong Kong has always been a global financial hub, making it a natural choice due to its openness to Web3,” Siu explained. “However, the Middle East is also highly attractive with its rapid growth and strong commitment to technology. Countries like Saudi Arabia are investing significantly in gaming and digital assets, while the UAE, home to Dubai and Abu Dhabi, has a robust history of supporting the Web3 sector.”
This upcoming move will mark Animoca Brands’ second attempt at going public, following its delisting from the ASX due to governance concerns related to its involvement in crypto activities.
The initial delisting from the ASX stemmed from governance issues raised in December 2019, focusing on the company’s governance practices and use of simple agreements for future equity (SAFEs) in its subsidiaries. Despite addressing these concerns with a comprehensive 39-page report, the ASX proceeded with delisting Animoca Brands on March 9, 2020.
Post-delisting, Animoca Brands continued operations without significant disruption, offering shareholders the option to retain ownership through its share registry, Automic, and facilitating private share sales.
Reflecting on the ASX delisting, Siu described it as a “blessing,” highlighting that Australia’s regulatory framework would have constrained the company’s growth.
“We have prior experience as a public company, having listed on the ASX in 2015 and subsequently delisted in 2020. Operating as a public unlisted company over the past four years has allowed us substantial growth. A strategic listing on a public market aligned with our industry will unlock our full potential,” Siu shared with BeInCrypto.
Animoca Brands, valued at $5.9 billion following its last funding round in 2022, is actively pursuing expansion and enhancing shareholder value. The company’s forthcoming public offering aims to find a conducive platform that aligns with its activities in GameFi and the metaverse.
As Animoca Brands prepares for its next public listing, the choice of location holds significant importance. Both Hong Kong and the Middle East provide regulatory frameworks supportive of cryptocurrency ventures, offering promising environments for the company’s ambitious initiatives.
The journey of Animoca Brands underscores the challenges and opportunities within the cryptocurrency gaming and metaverse sectors, underscoring the critical role of regulatory alignment in fostering growth and achieving success.