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Hong Kong blockchain gaming firm Animoca plans IPO in 2025-26, founder says
Based in Hong Kong blockchain video games Animoca Brands is considering a stock market listing, possibly in Hong Kong or the Middle East, as early as late next year.
“It depends on many factors, but we are confident that we will make it public,” Siu said in a statement to the Post on Thursday. “And if that happens, it’s likely in the second half of 2025.”
Siu is considering listing in Animoca’s hometown of Hong Kong or in a Middle Eastern market, he told technology news publication The Information, which first reported the initial public offering plans on Wednesday. Dubai has become a hotspot for cryptocurrency business.
Yat Siu, co-founder of Animoca Brands, speaks during a session at the Qatar Economic Forum (QEF) in Doha, Qatar, on May 24, 2023. Photo: Bloomberg
However, a possible IPO is still in its early planning stages and the company has not yet hired an advisor, Siu told the Post.
Returning to the public market – after being delisted in Australia in March 2020 following scrutiny of its cryptocurrency activities – means “bringing more attention to Web3”, the entrepreneur said.
“If you look at what companies like Coinbase have done to get the US attention on Web3, it’s a good example of a success to get more attention on Web3,” Siu said. “We hope to do something similar in due course.”
As a Hong Kong-based company, Siu said he hopes a future IPO will draw more attention in Asian markets as well.
Founded in 2014, Animoca Brands has become a major investor in the Web3 ecosystem, which boasts a vast portfolio of over 400 blockchain startups. It is also known for its metaverse platform The Sandbox, which gained popularity at the height of non-fungible token (NFT) hype and the metaverse boom in 2021. At its last publicly announced valuation, Animoca was worth $5.9 billion after a $75 million funding round in July 2022. Its investors include HongShan, formerly Sequoia Capital China, Singapore state fund Temasek Holdings, and Saudi Arabia’s government-backed smart city project Neom Companywhich last year invested 50 million dollars in Animoca. Animoca’s fortunes have risen this year along with the value of cryptocurrencies after bitcoin hit an all-time high. Yes previously told the Post this would have a “material impact” on the company this year. Much of Animoca’s financial holdings are made up of crypto assets, which it divides into liquid and off-balance sheet reserves, including Sand, The Sandbox’s native token.
According to an unaudited financial report released in April, the company had a combined cash and stablecoin balance of $291 million at the end of March. This is up from $194 million in April 2023.
In late 2022, Hong Kong unveiled a policy change aimed at supporting the virtual asset sector and attracting businesses to the city. Its compulsory licensing regime, which came into force in June last year, was however seen by many as unusually onerous, due to high compliance costs compared to limited market opportunities.
Siu, however, remains optimistic. Recent developments do not diminish Hong Kong’s status as a cryptocurrency hub “because not many jurisdictions even have a regime for that,” he said.
“Hong Kong is balancing the requirements and we know they are very serious about it,” he added. “But that’s part of evolution.”