OKCoin Founder becomes Largest Shareholder of a Hong Kong Listed Company, LEAP Holdings
Founder of OKCoin, Star Xu has recently become the biggest individual shareholder of a public listed company Hong Kong. The acquisition, worth a whopping $60 million, was completed on Wednesday.
The purchase which was done through OKC Holdings Corp – the parent company of OKCoin – was an acquisition with a total of about 3.2 billion shares of a construction engineering firm called LEAP Holdings Group for HK$0.15 (which is $0.12) per share. Consequently, OKC Holdings controls 60.49 percent of stock at LEAP Holdings.
What it means for OKCoin
This move, it is said, will increase the chances of the crypto exchange company’s probable listing on the Hong Kong Stock Exchange (HKEX). This is a power move not just for the company but also for the crypto market in general.
Star Xu currently has 52.32 percent ownership – which is already majority – of OKC Holdings. This was done through Star Xu Capital and OKEM Services Company.
The shareholder list of OKC Holdings includes Gang Mai with a 5.08 percent stake through Vlab Capital and Bo Feng with a 9.86 percent stake through Golden Status Ventures. Also, Yuzhu Shi, a Chinese billionaire has a daughter with a significant investment in OKC Holdings with 13 percent.
OKC Holdings and the Hong Kong Stock Exchange
On the 10th of January, a motion for application with the Hong Kong Stock Exchange was filed by OKC Holdings for the acquisition of LEAP Holdings Group.
This proved successful as it was completely done in about a fortnight.
Cryptocurrency and Stock Exchange
It would seem like crypto exchanges are now looking to become publicly listed on various countries’ stock exchanges. This is a much shorter and easier process that becoming a publicly listed company through an IPO.
Bithumb, a South Korean crypto exchange, has signed a binding letter of intent agreement with Blockchain Industries – a company listed on the U.S. Stock Exchange – for a reverse merger.
Also, in August of 2018, Huobi, a Singaporean crypto exchange also purchased a 66.26 percent stake, worth $70 million, of Pantronics Holdings, a company listed on the Hong Kong Stock Exchange.
A little earlier, in July, Michael Novogratz, the billionaire founder of Galaxy Digital, also used a reverse merger to merge his crypto merchant bank with Bradmer Pharmaceuticals. This move has helped him become publicly listed in Canada.