Bitkub to Pursue IPO in 2025, Targets Expansion in Southeast Asia

Bitkub to Pursue IPO in 2025, Targets Expansion in Southeast Asia

by April 29, 2024

Thailand’s crypto exchange Bitkub Capital Group plans to launch an initial public offering (IPO) by the end of 2025, aiming to expand its operations across Southeast Asia, particularly targeting emerging markets like Cambodia, Vietnam, and Laos.

According to Nikkei Asia, this move is part of a strategic effort to establish a significant presence in regions currently underserved by major digital asset platforms.

Topp Jirayut Srupsrisopa

Topp Jirayut Srupsrisopa

According to Topp Jirayut Srupsrisopa, CEO of Bitkub, the company intends to collaborate closely with local regulators from the outset to become a trusted platform in these new markets.

Unlike the crowded markets of Indonesia and the Philippines, where dominant players are already established, Bitkub seeks to leverage the lack of legacy financial systems in these developing nations to introduce advanced technological solutions, potentially transforming how they engage with digital economies.

With a daily trading volume of US$44.5 million, Bitkub currently leads the Thai market, holding approximately 75% of the market share, even after the entry of global giants like Binance.

The IPO is seen not only as a growth strategy but also as a move to fortify the legitimacy of Bitkub, considering its substantial role in Thailand’s financial ecosystem, holding around US$3 billion in customer deposits.

Topp emphasizes the importance of trust in financial services and views the upcoming public listing as a pivotal step in transitioning Bitkub from a private enterprise to a public infrastructure asset.

The funds raised are expected to support further domestic investments and facilitate the company’s international expansion, focusing on cryptocurrency use cases such as remittances for migrant workers and services for digital nomads.

In 2022, Siam Commeercial Bank had scraped plans to acquire 51% of Bitkub’s shares in a deal worth over US$500 million which valued the crypto exchange at US$1 billion.

Despite these challenges faced during the recent “crypto winter,” which saw a significant downturn in the cryptocurrency market, Bitkub reported a profit in 2022 and continues to invest in the Thai startup ecosystem.

Looking ahead, Bitkub is exploring potential dual listings in international markets such as Hong Kong or the U.S. These steps are part of its broader ambition to become a proxy for Thailand’s burgeoning digital economy and help the country navigate beyond the middle-income trap through innovation in digital and green trade sectors.