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Russia based fintech company ‘Blackmoon’ is setting itself up as a bridge between digital cryptocurrencies and traditional financial assets by offering world’s fourth largest smart phone producer ‘Xiaomi’, a digital route to participate in the Initial Public Offering (IPO).
Xiaomi’s IPO is going to be the largest around the world in last four years and one of the first in Beijing since the new rules were implemented by the government. It is worthwhile to note that Xiaomi is going to be among the first overseas-listed Chinese firms to search for a secondary listing at home with the new Chinese Depositary Receipts (CDRs). During last few years, companies have been aggressively launching Initial Coin Offerings (ICOs) to gather funds by selling a token that later could be used in a platform or as an investment tool. However, Xiaomi decided to take the traditional way to raise funds and invest in the future growth of the company.
What is the offer?
Blackmoon has offered Xiaomi to sell digitized tokens for its stocks on a dollar-for-dollar premise. The payment options could include Bitcoin (BTC), Ethereum (ETC) or Litecoin (LTC). Blackmoon will apply the income to subscribe to Xiaomi’s $4.7 billion in Hongkong which will initiate July 9 on the Hong Kong stock trade. Xiaomi set the price of its shares at HK$17 ($2.16) each. This makes valuation of the smartphone manufacturer at $54 billion, which is a half the initially sought value of $100 billion. The token price offered by Blackmoon is reportedly linked to the performance of Xiaomi shares.
Chief Operating Officer at Blackmoon, ‘Sergey Vasin’ said that “The price of the Xiaomi token is determined by the IPO price of Xiaomi’s shares, with applicable fees. We only accept crypto, so it would be the equivalent amount in US dollars or Hong Kong dollars.”
As per them, holders will have the capacity to purchase the tokens on a month to month premise. After reclamation, it will exchange the Xiaomi stock in the portfolio equivalent to the value of tokens bought. Subsequently, token holders will get their investment in the form of digital currency, however, Blackmoon is apparently working on payments options.
The Chief Executive at Blackmoon, ‘Oleg Seydak’ said that in the wake of gathering information via social media, it developed that “many people said that they are interested in participating in the IPO through tokens.”
A Xiaomi representative told the South China Morning Post that the token deal offered by Blackmoon had not been yet been affirmed or supported by the cell phone maker, while Vasin declined to uncover the number of tokens sold. The tokens are not accessible in Hong Kong or mainland China.