The West Coast Aquaculture Group chose USDT over BTC and ETH due to the stability of the coin.
The company intends to use the funds from the IPO to expand its business activities.
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 its first IPO in the country, which will accept crypto-currencies as means of payment. Stax, an Australian crypto-friendly capital raising platform that initiated the WCA IPO, announced this news on October 29th. Through Stax, the WCA will offer investors who wish to participate in its IPO the opportunity to raise equity through tether (USDT) or Australian dollars.
According to the announcement, West Coast Aquaculture Group chose USDT over Bitcoin (BTC) and ether (ETH) due to the price stability of stable coin. While the Stax currently only supports USDT, the company’s CEO, Kenny Lee, indicated that the company is considering supporting more Stable Coins in the future. In his opinion, Stablecoins offer the advantages of using crypto-currencies while eliminating the volatility associated with digital assets.
Lee added this,
“The acceptance of USDT in an IPO is a transformative step in Australia and a significant advance for the adoption of crypto currencies in general. It paves the way for the future of capital markets down under. We are in the process of democratizing access to a market that was previously difficult for foreign investors to access, which will only benefit Australian companies in the longer term”.
WCA will use IPO funds for expansion
WCA currently operates a large sea farm in Langkawi, Malaysia. The company mainly produces fresh grouper fish for wholesalers and retailers in Singapore, Hong Kong and Malaysia. The company reportedly intends to use the funds raised through the IPO for expansion. Expansion plans include the purchase of new hatcheries and rearing facilities.
The WCA is reportedly offering between 10 and 14 million shares, representing approximately 8.78% and 11.87% of total shares. The company is selling each share at a price of 0.38 pounds sterling and intends to achieve a minimum target of 3.84 million pounds sterling. Following the IPO, the WCA reportedly intends to place its shares on the Sydney Stock Exchange (SSX). Under the Group’s plans, trading in the shares is expected to commence on November 19, 2020.
SSX CEO Michael Go praised Stax for organizing a capital increase to support the USDT,
“As a supporter of innovation in the capital markets, the Sydney Stock Exchange praises STAX for its ability to facilitate the financing of companies with USDT. This is a first and historic development in the Australian market that will dictate the future of capital raising, particularly for growth companies”.