Securitize expects to raise $400M ahead of public debut
Securitize expects to raise $400M ahead of its public debut after fewer than 30% of shareholders in Cantor Equity Partners II elected to redeem their shares in the SPAC taking it public. The tokenization platform said Friday it anticipates roughly $400 million in gross proceeds from the merger and related PIPE financing, excluding transaction costs. The listing marks one of the most closely watched crypto-adjacent IPOs as Wall Street ramps up exposure to on-chain securities.
Key Takeaways
- Less than 30% of CEPT shareholders chose to redeem, supporting an expected $400 million raise for Securitize.
- The CEPT merger is expected to close July 1, with SECZ set to trade on the NYSE on July 2.
- CEPT shares closed Friday up 7% at $10.86 and rose after hours to $11.
- Securitize counts BlackRock, Morgan Stanley, Coinbase, and Circle among its backers.
- Tokenization is drawing heightened interest from investors and US regulators.
Why does Securitize expect to raise $400 million?
Tokenization platform Securitize announced final redemption results on Friday showing that less than 30% of shareholders in Cantor Equity Partners II had elected to redeem. That low redemption rate means more capital stays in the deal, supporting the company's projection of approximately $400 million in gross proceeds.
The proceeds include funding from the SPAC merger and related private investment in public equity, or PIPE, financings. Securitize excluded transaction-related expenses from that figure. Cantor Fitzgerald backs the acquisition vehicle taking the company public.
When will Securitize debut on public markets?
The merger between Securitize and CEPT is expected to close on Wednesday, July 1, subject to shareholder approval on Monday and other closing conditions. Trading under ticker SECZ on the New York Stock Exchange is scheduled for Thursday, July 2.
Shares in Cantor's acquisition vehicle rose on Friday, closing the trading day up 7% to $10.86 and continuing to rise after-hours to $11. CEPT shares climbed as Securitize announced fewer shareholder redemptions than expected.
Why does Securitize's public debut matter for tokenization?
Securitize is set to be the latest buzzy crypto-related public debut as Wall Street seeks exposure to tokenization, an area that is seeing heightened investor interest and attention from US regulators.
Co-founder and CEO Carlos Domingo called reaching public markets a significant milestone and a reflection of the growing momentum behind tokenization. When Securitize started more than eight years ago, Domingo said, the idea that major institutions would embrace tokenized securities was still largely theoretical. Today, tokenization is moving into the mainstream.
Securitize is backed by major institutions, such as BlackRock and Morgan Stanley, and crypto firms, including Coinbase and Circle. It has carved out a lead in the tokenization sector, where assets are represented on blockchains. The company partnered with the New York Stock Exchange in March to create tokenized assets for the exchange's upcoming tokenized securities platform.
What broader trends are shaping tokenized markets?
Standard Chartered said earlier this month that it expects the amount of tokenized assets active in decentralized finance to grow 37-fold to $2.7 trillion by the end of 2030. That forecast helps explain why investors are tracking listings such as SECZ.
In mid-May, the US Securities and Exchange Commission was reportedly ready to allow trading of tokenized stocks, but delayed the plan later that month after stock exchange officials raised concerns over how it would be implemented.
For ongoing coverage of listings, regulation, and digital asset markets, see our Fintech & Crypto Alerts section. Read the full report at Cointelegraph.