The Fintech giant Identitii has recently launched the first ASX based blockchain initial public offering (IPO) in the span of last two years, with their next target being raising an amount close to $11 million ahead of a September listing.
Identitii is reported to partner with Kyckr, which is the other exclusive Blockchain Technology Related IPO on the ASX (Australian Stock Exchange) in the market. Both of the companies released similar implementations of technologies, by extending blockchain usage to identify areas of involved businesses in a particular financial tranche.
Blockchain technology came into existence close to a decade ago and quickly jumped into the limelight as the technology offering the foundation to regulate transactions with digital currencies such as Bitcoin (BTC). The technology has since been widely used and adapted for enhancing security in major sectors especially online transactions and data, leading to the conclusion that blockchain technology has a greater bandwidth of applications.
Kyckr’s debut in the market space with ASX urged many other companies to rethink their archaic solutions. More than 30 companies have involved themselves in adding blockchain to their space with various takeovers, new products, and acquisitions.
A study that took place over past 6 months found that only a few of the stocks of the companies have gained significant growth. A major reason behind this can be the falling demand for cryptocurrency mining and the lower overall market prices in the crypto industry.
Coming back to the newly released blockchain strategy, Identitii blockchain is a private network serving as an immediate option for advancing the existing technology. The Sydney-based company is a four-year-old maker of financial software. The company has even developed a system based on blockchain technology, popularly called as “Serra”. The Serra technology is designed to safeguard data especially concerning with international transfers.
The company aims to fulfill the need in the market for stronger data security. A major reason for choosing the company and its services are because of the on-point marketing strategy that involves all requirements of KYT (Know Your Transaction). These requirements help institutions fight issues related to asset laundering, financing to terrorists and groups, etc.
KYT (Know Your Transaction) refers to an institution’s need for tracking every detail of a transaction. This type of tracking can be very tricky and resource intensive. However, by using blockchain technology as the foundation, companies are able to achieve greater efficiencies and system robustness.
According to Identitii, a blockchain creates a record which is immutable for every transaction and helps in verification steps like authenticating the audit trail, tracking and manage a record of all changes incorporated.
Similar to any other public cryptocurrency blockchain, the company also makes use the system of private blockchain that asks for the permission from the user to access the network. Unique Identitii tokens are also being created by the system that in any case cannot be overwritten.
Identitii IPO Details
- To raise $11 million, the IPO aims to sell 14.6 million shares at 75c that will be further used for the development of the product.
- The product of the company (i.e.) Serra was initially launched in September 2017. According to Identitii, the product is already in use by HSBC, India.
- Out of the total amount of $11 million, $4 million will be used in Serra development and commercialization. Another $4.1 million of the raised amount will go to the working capital.
- $1 million of the amount will go into research and development, $120,000 for intellectual property protection, $640,000 for office fit-out and $1 million being paid for the IPO.