Stax makes it possible: WCA shares can be paid for on the Sydney Stock Exchange (SSX) with Australian dollars and, for the first time, with the stable coin tether.
An initial public offering (IPO) is nothing unusual in itself
It becomes interesting, however, when traditionally securitized securities can also be paid for with tokens instead of just fiat money. This is now possible in Australia. Behind this is Australia’s crypto-friendly capital-raising platformStax. She and her client West Coast Aquaculture Group (WCA) have announced such a project. This is the first IPO in the country to accept a virtual currency as a means of payment.
Investors participating in WCA’s offering can purchase the company’s equity through Tether (USDT) or Australian dollars, as reported in media reportsis called. Since tether, as a stable coin, is naturally subject to slight fluctuations, it was given preference over other crypto currencies such as Bitcoin (BTC) or Ethereum (ETH). The speed was also a decisive criterion. WCA shares are expected to begin trading on the Sydney Stock Exchange (SSX) around November 19, 2020.
The acceptance of USDT in an IPO is a transformative move in Australia and a significant advance in the adoption of cryptocurrencies in general. It paves the way for the future of the capital markets Down Under. We are democratizing access to a market that has previously been difficult for foreign investors to access, which will only be beneficial for Australian companies in the long term.
IPO is expected to raise at least A $ 5 million
WCA is based in Melbourne and operates one of the largest marine farms in Langkawi, Malaysia. Their main products are live and fresh grouper species. WCA’s clientele includes wholesale and retail customers in Malaysia, Hong Kong and Singapore.
As stated in the IPO’s prospectus, WCA is offering between 10,000,000 and 14,000,000 shares at a price of $ 0.50 each. That is between 8.78 and 11.87 percent of the total available shares. The minimum target is 5 million Australian dollars. WCA chose the Sydney Stock Exchange (SSX) as its trading venue because of the support it gives companies with smaller market capitalizations. The requirements are also generally more transparent and easier to meet. After its IPO, WCA plans to use investments to expand. This includes the purchase of hatchery and rearing facilities in order to further optimize the supply chain for fresh fish. The IPO was led by Agile Legal and STAX to ensure