By Echo Wang NEW YORK (Reuters) -Gemini Space Station, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has drawn over 20 times as many orders for its planned U.S. initial public offering as there are available shares, people familiar with the matter said on Thursday. The strong demand, ahead of the IPO’s pricing later […]
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Exclusive-IPO of Winklevoss-founded crypto exchange Gemini over 20 times oversubscribed, sources say
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By Echo Wang
NEW YORK (Reuters) -Gemini Space Station, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has drawn over 20 times as many orders for its planned U.S. initial public offering as there are available shares, people familiar with the matter said on Thursday.
The strong demand, ahead of the IPO’s pricing later on Thursday, shows investors’ huge appetite for crypto company listings.
Gemini and its bankers have stopped taking new orders for shares and, in an unusual move, the IPO proceeds will be capped at $425 million, the sources said.
Any further price increase will instead reduce the number of shares sold, the people added, asking not to be identified as the information is not public.
Without the cap, Gemini would have been set to raise as much as $433 million in the first-time share sale, based on its filings with the U.S. Securities and Exchange Commission.
That figure excludes the $50 million Nasdaq has committed to invest in a private placement at the time of the IPO. Reuters was first to report on the investment.
A representative for Gemini did not respond to a request for comment.
SHARE PRICE ALREADY RAISED ON STRONG DEMAND
The company has already raised the proposed price of the 16.67 million shares being sold to between $24 and $26 each, up from a range of $17 to $19, due to strong demand. At the top of the range, Gemini would have a market value of over $3 billion, according to Reuters calculations based on filings.
Crypto listings are gathering momentum. Stablecoin issuer Figure Technology raised $787.5 million in an upsized U.S. IPO on Wednesday. CoinDesk owner Bullish and stablecoin issuer Circle both enlarged their offerings earlier this year.
Regulatory victories under a pro-crypto White House, rising corporate adoption, and inflows from exchange-traded funds have fueled a wave of listings, with the sector’s market value recently surpassing $4 trillion.
Gemini is expected to start trading on Friday.
Goldman Sachs and Citigroup are the lead bookrunners for the IPO. The company plans to list its shares on the Nasdaq under the symbol “GEMI”.
(Reporting by Echo Wang in New York; Editing by David French and Richard Chang)