Animoca Brands to Go Public? Yat Siu Reveals Why Hong Kong is the Ideal Choice for IPO

Hong Kong Emerges as a Leading Contender for Animoca Brands' IPO

Animoca Brands Corp., a key player in the blockchain gaming and crypto investment sphere, is eyeing a potential initial public offering (IPO) with Hong Kong emerging as a leading candidate for the listing.

Yat Siu, Chairman of Animoca Brands, emphasised in a recent Bloomberg Television interview that Hong Kong’s burgeoning digital asset sector and its status as the company's base make it a strong contender.

However, Siu pointed out that a definitive plan for the IPO could still be a few years away, as the company's current focus remains on expanding its business operations.

Current Valuation and Market Dynamics

Shares of Animoca Brands, which are traded on secondary markets, are currently valued between US$1.5 billion and US$3 billion, according to Siu.

This is a significant drop from the company's US$5.9 billion valuation achieved during a fundraising round in 2022.

Siu noted that the fluctuating valuations on secondary markets are influenced by thin trading volumes, which can distort market signals.

Despite these fluctuations, Animoca is not seeking to raise new capital at this time.

Animoca Brands’ X following surges past 296,200.

IPO Timeline and Market Conditions

The timeline for Animoca’s IPO remains uncertain and hinges on various market conditions.

Siu mentioned that while the company has always aimed to go public, the exact timing will depend on several factors, including the market's status.

"It takes time," Siu remarked, indicating the complexity of finalising an IPO schedule given the multiple elements involved.

He also revealed that Animoca is currently "midway through the audit, which is a critical piece of the IPO puzzle."

Audit and Confidence-Building Measures

The company's auditor for this process is Australia’s DFK Collins.

Siu highlighted that undergoing an audit is one of the many confidence-building measures that the market and institutional investors look for when a firm signals its intention to go public.

He also recalled that Animoca Brands, which was previously listed in Australia, de-listed in 2020 due to regulatory challenges surrounding crypto.

Siu told the Australian Financial Review in 2022,

“It’s maybe not a surprise that our growth grew explosively at the time we were delisted because we were able to do many things that, frankly, we couldn’t do because there were things at the time that the ASX was not comfortable with and didn’t understand.”

Animoca Brands Expands Horizons with DeLorean and Magic Eden Partnerships

In the meantime, Animoca Brands is making waves in the Web3 and NFT spaces with two major updates.

The company has teamed up with DeLorean Motor Company to integrate the iconic DMC-12 sports car into Motorverse, a leading Web3 motorsport ecosystem.

This partnership will feature a limited-edition NFT collection of the DMC-12, blending DeLorean's automotive legacy with Motorverse's cutting-edge digital racing technology.

In addition, Animoca Brands has collaborated with Magic Eden to launch MagicMoca, a new NFT launchpad set to debut in Q3 2024.

MagicMoca will cater exclusively to the Mocaverse community and leverage MOCA Coin for NFT transactions.

This initiative aims to counteract NFT project failures and regulatory challenges by focusing on high-quality NFT projects and fostering community engagement.