World Chess, a media and online gaming company that broadcasts the World Chess Championship, announced this week that it would soon conduct a hybrid Initial Public Offering (IPO).
Per a CNBC report on the development, World Chess’s hybrid IPO will see the company sell security tokens to accredited investors in the U.S and the U.K before eventually getting listed on the stock market.
Hybrid securities such as the one planned by World Chess allow investors to earn a fixed or floating rate of returns before the company’s initial public offering on a stock exchange.
With World Chess, eyeing a listing on London’s Alternative Investment Market (AIM), the security tokens which will be sold to investors in the latest offering will allow them own shares in the company.
Then, upon achieving that listing, investors can decide either to sell their shares on the stock market or privately to other accredited investors.
Revealing details regarding how World Chess plans to onboard accredited investors for its landmark offering CEO Ilya Merenzon, said they partnered with tokenization startup, Securitize, which raised $14 million in September, to oversee the token offering.
She further noted that what they’ve done is only to pioneer security tokens as innovation and that many companies would likely go down that path in the future. She said:
‘Hybrid IPO’ could set a precedent for new technologies to be used more widely in fundraising rounds. (This is) a pioneering financial innovation, (and) one, I believe, many companies will use to raise funds in the future.