OKCoin Becomes Largest Shareholder With New Acquisition
The founder of digital currency exchange OKCoin named Mingxing “Star” Xu has just been deemed the largest individual shareholder of a public company. The latter, in particular, is reportedly listed in Hong Kong. The narrative became possible after the executive acquired the company in a $60 million-worth acquisition.
Details of the Completed Deal
According to LEAP Holdings Group, which is the construction engineering company that was acquired, the completed deal took place on Wednesday. Basically, the OKC Holdings Group – the parent company of OKCoin – bought around 3.2 billion shares of the said firm for about HK$0.15 (i.e. $0.02) per share. By doing so, the company is successful in making the takeover possible.
As such OKC Holdings has just become the largest shareholder of the LEAH Holdings company. It now owns at least 60.49 percent of its stock and, the same time, has a similar percentage of voting rights. Due to this, the exchange is getting one step closer to a more plausible back-door listing specifically on the HKEX.
Xu, in particular, holds the majority stake in the aforementioned holdings company. He has about 52.32 percent ownership via two companies called StarXu Capital and OKEM Services Company.
There are also other notable shareholders of OKC Holdings, which includes Gang Mai and Bo Feng. The former reportedly holds 5.08 percent stake through Vlab Capital; whereas the latter (from Ceyun Ventures) got 9.86 percent via Golden Status Ventures.
Mai also owns another joint fund and it is called Venturelab, which was jointly created with the United States-based venture capitalist named Tim Draper. Jing Shi, who is the daughter of the Chinese billionaire businessman Yuzhu Shi, also decided to invest in OKC Holdings. She reportedly owns 13 percent.
History of Filing of Application
OKC Holdings first filed for the application with the HKEX on January 10 this year. The idea was to primarily purchase a controlling stake in LEAP Holdings Group. The deal then got completed within two weeks only.
It is worth noting that cryptocurrency exchanges are rapidly increasing in terms of looking to opt for a reverse-merger path. By doing so, they are able to be publicly listed companies. This is the complete opposite of going for a conventional IPO. Besides, the latter is proven to bring companies a lengthy and complex process.
Just recently, the South Korean holding company called Bithumb exchange has signed a binder letter of agreement the United States-listed investment company Blockchain Industries. This was also made possible via a reverse merger.