Blockchain Startup Identitii To Launch IPO On Australian Stock Exchangebr>
Digital-ID management startup identitii has become the second blockchain firm to launch an initial public offering (IPO) on the Australian Stock Exchange (ASX).
Identitii allows financial institutions to accelerate transaction verification processes by enabling the secure, trusted and auditable exchange of information within and between counterparty financial institutions, and financial institutions and their end clients. The company was founded in 2014, and is led by a team of industry experts with extensive experience in strategic management, blockchain and fast business growth, and is complemented by an advisory board of senior financial services industry veterans.
The company is seeking to raise $11 million AUD ($8M USD) in advance of an ASX listing in September. The goal of the IPO is to sell 14.6 million shares at 75 cents. The offer opens August 16 and closes on August 31.
The money raised will be used in part to support development and marketing of identitii’s Serra solution, a blockchain-based application that enables secure and trusted exchange of information over financial networks. A comparable amount will be kept as working capital with smaller amounts dedicated to areas such as research and development (R&D) and IPO expenses.
“With Serra, identitii has taken the approach of utilizing the benefits of blockchain and tokenization to complement the established payment networks such as SWIFT, the international messaging network that facilitates the exchange of funds between correspondent banks,” the company said in its prospectus. “Serra aims at mitigating the shortcomings of these existing networks, primarily the way by which they share information, rather than trying to replace them.”
The company said the funds raised from this IPO are anticipated to be sufficient to ensure that identitii has the funds to continue to develop, deploy and market its products and services over at least 24 months from listing.
The company reported a $1.9 million loss on $1.2 million revenue in 2017 and is forecasting a $3.2 million loss from $1.4 million revenue this year. About a quarter of identitii’s shares will be publicly traded after listing — for a total market cap of about $41 million.
Kyckr, the first blockchain business to float on the ASX, raised $5.2 million AUD ($3.6M USD) in its IPO in Setember 2016.