July 1, 2024
By Anjali Kochhar
Hong Kong-based blockchain gaming firm Animoca Brands is exploring options for a public listing, potentially in Hong Kong or the Middle East, as early as late 2025, co-founder Yat Siu announced.
Siu expressed confidence in going public, targeting the second half of 2025. However, he emphasized that the IPO is still in its early planning stages, with no advisor hired yet. He stated, “It’s contingent on many factors, but we feel confident that we will go public.” The company is considering listing in its home city of Hong Kong or a Middle Eastern market, with Dubai being a notable hotspot for crypto businesses. This information was first reported by The Information, a technology news publication.
Returning to the public market is part of Animoca’s strategy to bring more attention to Web3 and Asian markets. Siu compared the potential impact to what Coinbase achieved for Web3 awareness in the US. “If you consider what companies like Coinbase have done for US attention in Web3, it’s a good example of a successful case to bring more focus on Web3,” he said. “We hope to achieve something similar in due course.”
Founded in 2014, Animoca Brands has become a significant player in the Web3 ecosystem, boasting a portfolio of over 400 blockchain start-ups. The company is known for its metaverse platform, The Sandbox, which gained popularity during the peak of non-fungible token (NFT) hype and the metaverse boom of 2021. Animoca was valued at $5.9 billion following a $75 million funding round in July 2022. Its investors include HongShan (formerly Sequoia Capital China), Singapore’s state fund Temasek Holdings, and Saudi Arabia’s Neom Company, which invested $50 million in Animoca last year.
Animoca’s fortunes have risen alongside the value of cryptocurrencies, especially after bitcoin reached an all-time high. Siu previously noted that this would have a “material impact” on the company this year. Animoca holds a significant portion of its financial assets in crypto, divided into liquid and off-balance sheet reserves, including Sand, the native token of The Sandbox. By the end of March, the company had a combined cash and stablecoin balance of $291 million, up from $194 million in April 2023, according to an unaudited financial report published in April.
Hong Kong’s recent policy shift to support the virtual asset industry has attracted business to the city, despite high compliance costs. A handful of crypto exchanges, mostly connected to mainland China where commercial crypto activity is banned, recently withdrew their applications. However, Siu remains optimistic about Hong Kong’s status as a crypto hub. “Hong Kong is balancing the requirements, and we know that they’re very serious about this,” he said. “But this is part of the evolution.”
The possible IPO of Animoca seeks to strengthen the company’s position in Asian markets and increase awareness of Web3. The action may have a big effect on the global blockchain and cryptocurrency industries, underscoring how crucial regulatory changes are to the expansion of these sectors.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
