OKC Holdings, Parent of Crypto Exchange OKCoin, Acquires Majority Stake In Hong Kong-Listed Firm

News | January 25, 2019 By:

The parent company of cryptocurrency exchange OKCoin has bought a controlling share in a public company listed in Hong Kong. The deal was completed on January 14.

LEAP Holdings Group, a construction engineering firm listed on the Hong Kong Stock Exchange (HKEX), announced that the parent company of OKCoin, OKC Holdings, has purchased about 3.2 billion shares of the company for HK$483.9 million ($61.6M USD), or HK$0.1520 ($0.02 USD) per share.

The deal makes OKC Holdings the largest shareholder of LEAP Holdings, owning 60.49 percent of its stock and having the same percentage of voting rights. OKCoin founder Mingxing “Star” Xu holds the majority stake in OKC Holdings with 52.32 percent via his two wholly-owned firms, StarXu Capital and OKEM Services Company.

The acquisition opens up the possibility for a back-door listing, also known as reverse merger, of OKCoin on the HKEX. Reverse merger is essentially a way to go public without all the windup and massive capital raise of an initial public offering (IPO).

Other crypto firms to have opted for a back-door listing include Huobi, which acquired majority stake in a HKEX-listed firm called Pantronics Holdings last year, and BTHMB, which recently signed a binding letter of intent (LOI) to merge with US-listed investment firm Blockchain Industries.