West Coast Aquaculture Group (WCA) to Become Australia’s First IPO to Accept Cryptocurrencies
Melbourne-based fundraising platform Stax, which supports cryptocurrency payments, has announced that one of its clients will conduct Australia’s first initial public offering (IPO) that accepts digital currencies as a method of payment.
West Coast Aquaculture Group (WCA) is open to investors who wish to participate. Investors will be able to purchase shares in the company using Tether (USDT) or Australian dollars (AUD).
USDT was chosen over other major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) because it offers greater price stability.
The IPO will be managed by Agile Legal in cooperation with Stax.
Kenny Lee, CEO of Stax, emphasized that stablecoins are better suited to deliver the practical benefits of cryptocurrencies because they are not as volatile as other digital assets.
“Accepting USDT in an IPO is transformative for Australia and a significant step forward for broader cryptocurrency adoption. It paves the way for the future of capital markets in Australia,” Lee said.
He also revealed that Stax plans to add support for additional stablecoins in the future.
“We are democratising access to a market that has been difficult for foreign investors, which will ultimately benefit Australian businesses over the long term,” he added.
WCA operates one of the largest marine farms in Langkawi, Malaysia, with a primary focus on harvesting fresh grouper for wholesale and retail customers across Malaysia, Singapore, and Hong Kong. The funds raised through this offering will be used to finance expansion initiatives, including the acquisition of new hatcheries and nurseries.
The company is offering between 10 million and 14 million shares at A$0.50 each, representing approximately 8.78% to 11.87% of the total shares on offer. WCA’s minimum fundraising target is A$5 million. After the capital raise, the company intends to list its shares on the Sydney Stock Exchange (SSX), with trading expected to begin around 19 November 2020.
Michael Go, CEO of the SSX, welcomed Stax’s role in facilitating an offering that supports USDT payments.
“As a supporter of innovation in the capital markets, the Sydney Stock Exchange applauds Stax for enabling businesses to raise capital with USDT. This is a first and a historic development in the Australian market that will shape the future of capital raising, particularly for growing companies,” he said.
Translated by Carolane de Palmas