- West Coast Aquaculture Group chose USDT over BTC and ETH because of the coin’s stability.
- The firm intends to use the funds from the IPO to expand its operations.
- According to SSX CEO, Michael Go, this move will dictate the future of capital raising in Australia.
West Coast Aquaculture Group (WCA), an Australian company that operates an aquaculture farm, is planning to conduct the first Initial Public Offering (IPO) in the country that will accept cryptocurrencies as payment. Stax, an Australian crypto-friendly capital raising platform that set up WCA’s IPO announced this news on October 29. Per Stax, WCA will let investors that seek to participate in its IPO purchase equity using Tether (USDT) or Australian Dollars.
According to the announcement, the West Coast Aquaculture Group chose USDT over bitcoin (BTC) and ether (ETH) because of the stablecoin’s price stability. While the Stax only supports USDT at the moment, the company’s CEO, Kenny Lee, noted that they are considering adding support for more stablecoins in the future. According to him, stablecoins offer the benefits of using cryptocurrencies while excluding the volatility associated with digital assets.
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Lee added that,
“The acceptance of USDT in an IPO is a transformative move in Australia and a significant step forward for cryptocurrency adoption in general. It paves the way for the future of capital markets down under. We are democratising access to a market which has been hard for overseas investors to get into, which will only benefit Australian businesses longer term.”
WCA will use the IPO funds for expansion
Currently, WCA runs a large marine farm in Langkawi, Malaysia. The company mainly produces fresh Grouper fish for wholesalers and retailers in Singapore, Hong Kong, and Malaysia. Reportedly, the firm intends to use the funds raised through the IPO for expansions. Among its expansion plans is purchasing new hatchery and nursery facilities.
Reportedly, WCA is offering between 10 and 14 million shares, representing approximately 8.78% and 11.87% of the total shares. The firm is selling each share at £0.38, intending to reach a minimum target of £3.84 million. After the IPO, WCA allegedly intends for its shares to float on the Sydney Stock Exchange (SSX). Per the group’s plans, share trading is set to start on November 19, 2020.
Lauding Stax for organizing a capital raise that supports USDT, SSX CEO, Michael Go said,
“As a supporter of innovation in the Capital Markets, the Sydney Stock Exchange applauds STAX for its ability to facilitate the funding of companies with USDT. This is a first, and historic development in the Australian market which will dictate the future of capital raising, particularly for growth companies.”