HashKey aims for US$214 million in Hong Kong IPO amid Beijing's crypto pressure

Core Viewpoint - HashKey Holdings has initiated its share sale in Hong Kong, aiming to gauge investor interest despite ongoing regulatory warnings from China's central bank regarding virtual currencies [1][2]. Group 1: IPO Details - HashKey has set its initial public offering (IPO) price range between HK$5.95 and HK$6.95 per share for over 240 million shares, with a listing date scheduled for December 17 [1]. - The company is targeting up to HK$1.67 billion (approximately US$214 million) from the IPO, having previously aimed for US$500 million [2]. Group 2: Regulatory Environment - The People's Bank of China has reiterated its strict stance on cryptocurrency speculation, maintaining a ban on crypto trading and committing to crack down on illegal financial activities [2]. - Despite the regulatory challenges from Beijing, Hong Kong is perceived as offering a more relaxed environment for compliant firms, particularly with the introduction of the Stablecoin Ordinance [5]. Group 3: Market Position and Performance - HashKey is one of 11 virtual asset trading platforms recognized by Hong Kong's Securities and Futures Commission and is set to be the second crypto exchange operator to list in the city [3]. - The company holds a dominant position in the market, with over 75% market share in Hong Kong's trading volume for 2024 and is the largest provider of on-chain services in Asia [7]. - HashKey's retail bookbuilding has seen significant interest, attracting HK$1.85 billion in margin financing within half a day, indicating a potential oversubscription of 23.7 times for the retail tranche [6].