HashKey Aims for Upper-End Pricing in Its Upcoming Hong Kong IPO

HashKey, which operates the largest licensed crypto exchange in Hong Kong, plans to price its initial public offering (IPO) close to the upper limit of a specified range, potentially raising around HK$1.6 billion (approximately $206 million). This IPO will test the market appetite for regulated digital asset platforms within the city.

Key Takeaways

HashKey is expected to price its IPO at HK$6.68 per share, near the top of its marketing range.
The company aims to sell 240.6 million shares and could raise about HK$1.6 billion.
Strong demand is evident, with major institutional buyers purchasing approximately 80% of the available shares.
HashKey could become the first public crypto exchange in Hong Kong.
The proceeds from the IPO will be utilized for technology upgrades, staff expansion, and enhanced risk management.

HashKey

HashKey’s Share Sale: A Potential Milestone for Hong Kong’s Crypto Market

HashKey is working toward becoming the first publicly listed cryptocurrency exchange in Hong Kong. This IPO serves as an important indicator of how much interest there is in public markets for compliant digital asset platforms, especially after recent market developments. It comes at a time when Hong Kong is experiencing a significant year for IPOs, with total proceeds expected to reach a four-year high.

Initially, HashKey aimed to sell 240.6 million shares globally, reserving roughly 24.1 million for local investors while the rest was allocated for international buyers. Pricing at the top of the expected range would raise funds up to HK$1.67 billion, valuing the company at about HK$19 billion, as mentioned in its prospectus.

HashKey's shares are due to start trading on Wednesday in Hong Kong. The offering is sponsored by JPMorgan Chase and Guotai Junan.

IPO: A Benchmark for Hong Kong’s Leading Regulated Crypto Exchange

HashKey was one of the first exchanges to obtain a license under Hong Kong's dedicated digital asset regulatory framework, introduced in 2022. This initiative aimed to bring trading operations from offshore platforms back to the city.

According to research included in its filing, HashKey accounts for over 75% of Hong Kong's onshore digital asset trading volume, positioning it as a leader in the regulated market.

In addition to spot trading services, HashKey operates one of Asia's prominent on-chain service platforms. This includes offerings for staking, tokenization, and custodial technologies across multiple protocols. The company also manages billions in assets through funds and structured products targeting institutional clients and high-net-worth individuals.

The revenue generated from the IPO is expected to be reinvested into enhancing the company's technology infrastructure, expanding its workforce, and bolstering risk management practices. These efforts aim to ensure that HashKey emerges as a key player in Hong Kong's aspiration to become a regional digital asset hub.

Despite the promising outlook, HashKey's IPO comes at a time of market uncertainty. Following a drop of about 30% in Bitcoin prices since its peak in October, the overall risk appetite among global investors has moderated as they reassess valuations relating to growth and AI sectors.

For those investing in cryptocurrency, the initial trading performance of HashKey will provide significant insights into whether public equity investors are willing to support regulated exchanges at higher price points.