HashKey Holdings, which operates one of Hong Kong’s largest licensed cryptocurrency exchanges, made its trading debut on the local bourse on Wednesday, with its share price up by as much as 6.6 percent above its initial public offering price before quickly losing momentum, but later trimming losses.
By the midday break, the stock was down by 2.7 percent from its IPO price, trading at HK$6.5 ($0.84), giving the company a market capitalization of about HK$18 billion.
HashKey sold about 241 million shares, including 24.06 million in the Hong Kong public tranche. Priced at HK$6.68 apiece, the IPO raised net proceeds of nearly HK$1.48 billion which will be mainly used for technology and infrastructure upgrades, team expansion, brand building and partnerships development.
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The Hong Kong public offering was oversubscribed by more than 393 times, while the international tranche saw an oversubscription of 5.46 times. The deal attracted nine cornerstone investors, including UBS AM Singapore, FIL Investment Management, and CDH Global Frontier Ventures.
Xiao Feng, chairman of HashKey Group, said the company, founded in Hong Kong in 2018, began preparing for an IPO five years ago. He described the timing of the debut as “a natural progression”, given that meeting listing requirements takes time for a player in an emerging industry.
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Responding to concerns that HashKey has yet to turn in a profit over the past three years, Xiao said the company is prioritizing investment over short-term earnings with the virtual asset market still in a phase of rapid expansion. Profitability, he added, “is not the key yardstick at this stage”, and the firm’s cash flow is strong enough to support its long-term growth.
Financial Secretary Paul Chan Mo-po; Carlson Tong Ka-shing, chairman of Hong Kong Exchanges and Clearing; and Kelvin Wong Tin-yau, chairman of the Securities and Futures Commission of Hong Kong, attended the listing ceremony.
