Jonathan Bixby and Mike Edwards, two enterprising people, are planning something the world has never seen before: an IPO on a London Stock Exchange … for a fund whose business invests in NFTs.
NFT investment firm ready to go public in London https://t.co/83BQlZIGLw
– Financial News (@FinancialNews) April 1, 2021
Bringing NFTs to public markets
NFT Investments, whose company invests exclusively in NFTs, is planning an IPO on the Aquis Stock Exchange in London this year Bloomberg this morning.
The duo previously founded and acquired public companies involved in cryptocurrency mining, esports, and cannabis and are now turning their attention to NFTs.
Non-fungible tokens, or NFTs for short, are cryptographic representations of tangible or intangible assets in a blockchain. They tie ownership of the underlying asset to whoever holds it and can be used to display crypto art, virtual land, blockchain collectibles, or even real estate.
The sector has grown from a niche of $ 200 million to an ecosystem of over $ 20 billion in less than a year. NFTs have conquered the world of memes, music, and artists alike, and have enjoyed great acceptance in recent months with both small artists looking to make a living from big-name players like Beeple, who are valued at over $ 69 million (a single)) artwork.
The likes of Bixby and Edwards are taking advantage of this. According to a statement, the IPO deal will value the company at nearly $ 35 million, creating the first public company in the sector.
NFT Investments would raise over $ 12 million pre-expense by placing 200 million shares at 5p each. The stock is expected to start trading later this month.
“The company plans to invest in collectibles, infrastructure such as NFT marketplaces, and creator digital rights,” said Bixby, adding that it will raise more capital in the coming months.
Now, not everyone is sold on the promise of NFTs. “The tokens are interesting for some applications, especially in the arts, but are currently not investable for the broad investment community,” said Ulrich Urbahn, Head of Multi-Asset Strategy and Research at Berenberg Bank.
First Sentinel Corporate Finance is the management advisor for NFT Investments. Novum Securities and Tennyson Securities are joint brokers.
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