Stax, an Australian crypto-friendly capital raising platform announced that West Coast Aquaculture (WCA) will conduct its first Initial Public Offering (IPO).
WCA is a company that operates an aquaculture farm in Australia. It will allow investors to participate in its IPO purchase equity using the cryptocurrency Tether (USDT) or Australian Dollars. However, STAX chose Tether (USDT) over Bitcoin (BTC) and Ether (ETH) because of the stability of USDT.
In addition, STAX only supports Tether. STAX CEO Kenny Lee mentioned that they are planning to add support for more stablecoins in the future.
[blockquote footer=””]The acceptance of USDT in an IPO is a transformative move in Australia and a significant step forward for cryptocurrency adoption in general. It paves the way for the future of capital markets down under.[/blockquote]
Moreover, WCA mainly produces fresh Grouper fish for retailers and wholesalers in Singapore, Hong Kong, and Malaysia. Purportedly, the firm intends to utilize the funds raised through the IPO for expansions. Among its expansion, it plans to purchase new hatchery and nursery facilities.
WCA is offering between 10 and 14 million shares, representing nearly 8.7% and 11.8% of the total shares. The firm is selling each share at £0.38, planning to reach a minimum target of £3.84 million.
After the IPO, WCA allegedly intends for its shares to float on the Sydney Stock Exchange (SSX). As per the group’s plans, share trading is set to begin on November 19, 2020. SSX chief executive Michael Go praised Stax for facilitating a capital raise supporting USDT.
[blockquote footer=””]This is a first, and historic development in the Australian market which will dictate the future of capital raising, particularly for growth companies.[/blockquote]
Furthermore, in the first week of August, SSX had delivered its first listing. Mr. Go said the listing of junior gold miner Torque Metals was the first under the exchange’s new plan that was unveiled in December last year. He promised that SSX would list more firms before the year ends amid plenty of challenges presented in 2020.
In early May, STAX helped beverage company Australian Product Research, raise over $5 million to fund its expansion of its everlast branded products in the Australian market.