Bithumb IPO Plans “Accelerate” as South Korean Crypto Exchange Seeks Public Listing
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South Korean exchange Bithumb is looking to step up its IPO plans – and could look to launch an accelerated IPO as the crypto bull market continues.
According to Hanguk Kyungjae, Bithumb wants to “accelerate” its planned KOSPI listing.
Bithumb IPO: Exchange takes decisive steps
The media outlet reported that Bithumb announced that the exchange would spin off its investment activities into a separate company. This company is tentatively called Bithumb Investment.
The company published a regulatory filing on March 22 detailing its plans.
The new company will take control of Bithumb’s holdings, investments and real estate operations.
Meanwhile, the company currently known as Bithumb Korea will focus on operating the crypto trading platform.
The company plans to split Bithumb’s shares in a 6:4 ratio. The plan will be presented to the shareholders’ meeting on May 10.
If shareholders approve, Bithumb Investment will officially launch on June 13, the media company reported.
Shareholders are reportedly told that they will “receive new shares in the new company in proportion to their existing shares”.
The company made no mention of ongoing legal proceedings, including an investigation into alleged market manipulation allegedly carried out by the mysterious “real” owner of Bithumb.
Instead, the company seems to want to distance itself from such matters. It seems that the success of the IPO is due to its core business in the stock exchange business.
According to the #Korea Exchange, foreign investors have extended their buying streak, making a net purchase of #KOSPI shares worth 14.401 trillion won so far this year. This figure far exceeds last year’s total net purchases of 11.424 trillion won.https://t.co/LiPQxxVfCW
— The Chosun Daily (@EnglishChosun) March 24, 2024
Could Bithumb move forward with its IPO plans?
Business with Bithumb has been booming in recent months. The company until recently offered commission-free trading to regain market share from its biggest competitor, Upbit.
A renaissance in Bitcoin (BTC) retail trading has also led to a surge in trading volumes in South Korea. The nation is known to be crypto-enthusiastic. But there is a tiny pool of platforms that have fiat-crypto trading licenses.
The exchange hopes the spinoff will “further increase the possibility of an IPO” by creating an entity “focused on exchange operations,” according to the media outlet. It added:
“New businesses outside of the exchange’s core business will be driven quickly by new companies – without being constrained by the Bithumb IPO offering.”
A Bithumb spokesperson said the move would “improve efficiency increase”. The official added that it would also “stimulate” the growth of “stock exchange businesses” with “segregated ownership models.”
Bithumb has previously said it is eyeing a KOSPI debut in 2025. The new move could potentially see the exchange accelerate its listing.
Regardless of the timing, however, the exchange will likely win the nod to become the first South Korean trading platform to go public.
🇰🇷 South Korea’s crypto-enthusiast K Bank aims for an initial public offering amid BTC boom
K Bank, a South Korean neobank that has seen rapid growth largely thanks to its crypto operations, is set for an initial public offering (IPO). ) bid.#CryptoNews #newshttps://t.co/C0HqMWCHSL
– Cryptonews.com (@cryptonews) March 11, 2024
Upbit operator Dunamu is considered “too big” to debut on KOSPI. During the 2022 bear market, talk of a Coinbase-inspired listing on the NYSE Dunamu died down.
However, another company affiliated with Upbit is also planning its own IPO, namely the neobank K Bank.
K Bank offers fiat on/off ramp style banking services to Upbit customers. Through the partnership, K the Bank’s user base has grown exponentially in recent years, and the bank’s launch on KOSPI could also take place in the near future.
