This article comes fromBloombergBloomberg
Odaily Translator |
, by Liana Baker
Odaily Translator |
Diginex Ltd., a Hong Kong-based cryptocurrency and blockchain services company, will go public through a reverse merger with 8i Enterprises Acquisition Corp., people familiar with the matter said.
Diginex will list on Nasdaq following the deal with 8i, a blank-check company, said the people, who asked to remain anonymous. The proposed valuation was revised up during late-stage negotiations from an earlier estimate of $233.6 million, and the deal values Diginex at about $276 million, including debt, one of the people said.
The deal could be announced as early as Wednesday in New York, the people said.
Diginex provides consulting services and develops blockchain tools to companies such as payments company Fidelity National Information Services. The company also plans to launch a virtual currency marketplace, according to its website. 8i is a special purpose acquisition company, a type of company that raises capital through planned acquisitions or mergers with other companies.
Representatives for Diginex and 8i declined to comment.
Cryptocurrency companies such as Diginex have been trying to skip IPOs and instead seek backdoor listings to access the public markets. Because IPOs can take longer to complete and involve more regulatory hurdles. Diginexs proxy application still needs to be approved by the U.S. Securities and Exchange Commission (SEC), the people said.
Diginex shareholders will receive 20 million shares of 8i common stock, valued at $10 each, according to a person familiar with the matter.
It is reported that Diginex has been hiring executives to expand in the United States. In February, Diginex hired former Goldman Sachs VP Will McDonough, who previously founded a brand management firm representing quarterback Tom Brady of the NFLs New England Patriots.
