Diginex, a blockchain financial firm based in Hong Kong, is set to go public soon. However, the company is not really using the most usual route of starting its own Initial Public Offering (IPO). Instead of that, Diginex has decided to go through a reverse merger with 8i Enterprises Acquisition Corp, an investment holding company.
The reverse merger will make the company be listed on Nasdaq, one of the largest exchanges in the world. The deal will be worth $276 million USD including debt. The shareholders of the company are set to get a total of 20 million shares of 81. These will be ordinary shares which are valued at $10 USD per piece at the time of this report.
In case you do not know, a reverse merger, also known as a reverse takeover, is when a private company decides to acquire a public one in order to bypass the process of going public. This is often done because the process is quite complex and it has a high chance of not being accepted. In doing this, the company pays to bypass the whole process because the acquired company has already done it.
The CEO of Diginex, Richard Byworth, has talked about the reverse merger. According to him, the main goal of the process was to ensure that Diginex would have more visibility in the market. This will add a lot of value to the company because Diginex will be the first blockchain company to be featured on Nasdaq.
As the interest in the blockchain technology is very high at the time, he hopes to capitalize on this, which could make the prices of the shares go up quite fast.
Diginex is constantly making moves in order to improve its value in the market. Last year, the company joined the Global Digital Finance group as one of its founding members. The group was created in order to drive the acceleration of the digital finances industry.
Other companies such as the R3 consortium, the blockchain startup accelerator ConsenSys and the crypto exchanges Coinbase and Circle are also a part of the group.
The Easy Way Of Going Public
There is no way to deny that Diginex took the easy route here. Last year, Bitmain tried to go public and the company failed. Recently, it has decided to do it again, but there is simply no guarantee that the company will get what it wants this time.
As Bitmain has only recently filed the documents with the U. S. Security and Exchange Commission (last time, the company was denied to go public by the Hong Kong Stock Exchange), we will know the answer in some months.