Blockchain start-up Identitii makes ASX debut
Identitii will put its IPO funds towards commercialising and refining its blockchain platform which global bank HSBC is currently using.
Blockchain-focused Identitii (ASX: ID8) has made its debut on the Australian Securities Exchange today after raising $11 million with its initial public offering (IPO).
The financial technology company floated at $0.95, up $0.20 from its IPO of $0.75 per share.
It follows Kyckr (ASX: KYK) as the second blockchain-based IPO on the ASX. Kyckr’s business involves technology solutions to protect against money laundering, fraud and tax evasion.
With an indicative market capitalisation of $40 million, Sydney-based Identitii is a financial software developer that has built a platform on a private blockchain to provide a way for banks and corporate institutions to securely overlay documents and information on messages moving through existing payment networks.
This private blockchain system generates unique “Identitii tokens” that cannot be overwritten.
The platform is expected to result in a higher rate of payments being settled in the first instance, as well as faster reconciliation, significantly decreased risk and an improved customer experience.
Identitii believes its token system has the potential to solve a “multi-million-dollar problem for banks, which, combined, send more than 25 million messages over existing payment networks every day”.
According to the company, this existing infrastructure currently limits the amount of detail that can be shared in messages, resulting in high rates of payments being held up for manual verification and investigation.
“The need for enriched information to be shared between financial institutions and corporates is being driven by changing regulations and a push for faster and more transparent communication between counterparties,” Identitii chief executive officer Nick Armstrong said.
IPO funds
Identitii said funds raised from the IPO will go towards further development and commercialisation of the company’s platform, which is currently being used by global bank HSBC.
“The opportunity to help banks and corporates achieve the visibility they need into their financial transactions is what we are solving at Identitii, and it is a solution that has been validated by both the legacy networks we enhance and the financial institutions that use them,” Mr Armstrong said.
“The funds raised today will enable us to continue to support this evolution in the markets and further commercialise the Identitii product suite,” he added.
Funds will also be used to appoint key resources in business development, marketing, account management and professional services.
The company today also announced the appointment of Mark Garvie as chief commercial officer and Clare Rhodes as chief marketing officer to “accelerate growth and drive its go-to-market strategy”.
By mid-afternoon trade, Identitii stock was sitting at $0.88.