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- HashKey targets HK$1.6B IPO as demand tests regulated crypto exchanges in Hong Kong.
- IPO draws strong interest as the top 20 institutions take about 80% of the offered shares.
- Listing to gauge investor appetite as Bitcoin stays nearly 30% below October high.
HashKey, the operator of Hong Kong’s largest licensed cryptocurrency exchange, is moving toward a public listing after pricing its initial public offering near the top of the marketed range. The company aims to raise about HK$1.6 billion ($206 million). The transaction serves as a clear test for investors of regulated digital asset platforms in Hong Kong.
The company sold around 240.6 million shares at HK$6.68 per share, according to a report by Bloomberg. The offer was marketed within a price range of HK$5.95 to HK$6.95. HashKey chose not to exercise an option to increase the deal size. The decision signals confidence in the existing structure of the offering.
Investor demand remained strong throughout the book-building process. The top 20 institutional investors took roughly 80% of the shares in that tranche. This figure excludes shares allocated to cornerstone investors. Total demand exceeded the number of shares available by several times, indicating solid interest despite broader market caution.
HashKey Set to Become First Listed Crypto Exchange in Hong Kong
HashKey is now poised to be the first publicly traded cryptocurrency exchange in Hong Kong. The listing arrives at an active year of Hong Kong IPOs. The sum of money flowing through the city will hit a four-year high. The investors consider the deal a reference point of how the public markets value the compliant crypto businesses.
The firm earlier announced its intention to sell approximately 240.6 million shares globally. About $24.1 million of the shares were allocated to the Hong Kong investors. The remaining shares went to international purchasers. On the marketed scale, the deal would have increased HK$1.67 billion and estimated HashKey at approximately HK$19 billion on the prospectus.
The shares of HashKey will start trading in Hong Kong on Wednesday. JPMorgan Chase and Guotai Junan are co-sponsors of the offering. This contribution gives them institutional credence over the transaction and facilitates international distribution.
Also Read: HashKey Group Files for $215 Million IPO in Hong Kong
HashKey is one of the earliest exchanges to be licensed by the Hong Kong digital asset regime. The framework was introduced by authorities in 2022. The policy would move the crypto trading offshore to onshore. It also aimed to create a controlled space for digital assets.
Onshore Crypto Trading in Hong Kong Remains Highly Concentrated
According to research mentioned in the IPO filing of HashKey, the company has over 75% of the onshore trading of digital assets in Hong Kong. This share provides HashKey with a leading role in the regulated market. The sector is still characterized by limited competition and strict licensing requirements.
In addition to spot trading, HashKey also runs one of the larger on-chain services platforms in Asia. The company is involved in staking, tokenization, and custodial technology on various blockchain protocols. It also operates billions of dollars in client assets in funds and structured products that target institutional and high-net-worth clients.
However, HashKey will deploy IPO proceeds to scale up its technology stack and infrastructure. The company also has risk management systems. These measures are aimed at long-term scalability or regulatory resilience.
The listing time is still a challenge. Bitcoin has dropped nearly 30% since its October peak. The launch of HashKey will give an indication of whether the equity markets are willing to back regulated crypto exchanges at a premium price.
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