In order to allow investors to subscribe to an Offering, the admin first has to create said Offering. Each Offering is assigned a specific asset and each asset can only be assigned to a single offering.
Depending on which blockchain will be used for the asset tokenization and how custody is managed, there are two options how an offering is created.
In this option the following components are utilized:
Asset tokenization: done on Stellar and managed within the Offering Manager
Custody: done via a third-party custodian
Payment processing: done by a bank that acts as paying agent or via the regular bank account of the issuer
From the Offerings menu item you click the "Create New Offering" button in the upper right corner of the page.
Important: as a next step you need to create a valid custom asset on the Stellar blockchain and add it to the list of supported custom assets in your key management and custody software. Contact Bitbond, let us know the asset code that you would like to use so that we can create this asset for you together with your custodian.
Once the "Create New Offering" button is clicked the following page will appear and you can enter the Asset attributes.
The following Asset attributes can be defined when creating a new Offering:
Asset Code is a reference to the asset located on the blockchain. You can also think of this as a securities ticker. The asset code is used to match the offering to the asset. If you do not have an asset code, please contact Bitbond. As an example you could use ABC1 here or a securities identifier such as an ISIN, e.g. DE000A2TR7Q2.
Asset Description is used to describe the asset / offering in short form. Examples would be "ABC Corp. preferred stock" or "ABC Corp. senior unsecured bond 10/2028 1.25%".
Number of Tokens is the total number of tokens that are to be created and assigned to the offering.
Currency is used to assign a fiat currency to the offering in which the asset is denominated.
Price Per Token is where a value is assigned to each token using the fiat currency previously assigned. So for instance 1.00 EUR or 1,000.00 EUR.
Offering Start Date is the date the offering is available to investors.
Offering End Date is when the offering ends and is no longer available to accept orders from investors.
Minimum Investment is used to set the lowest amount an investor can submit for an order in the fiat currency that was specified further above.
Free Float Percentage sets the percentage of minted tokens that are available to investors for subscription. The tokens that are not part of the free float will remain in the issuer wallet. An example value would be 90%. If 100 tokens are the total amount shares, then only up to 90 tokens can be purchased by investors. Orders that come in beyond that value will be rejected.
Transferability defines whether or not an investor can transfer their tokens freely to other wallets. If the value is set to Open, each token holder can transfer tokens to other wallets without restrictions. If this is set to White List then the recipient address has to be whitelisted by the issuer first.
Key Management allows the admin to choose which key solution is assigned to the offering. There are currently 2 standard wallets available: Bitbond Internal and Fireblocks. When selecting the Fireblocks wallet option there are 3 additional options. 1) Create issuing and distribution vaults automatically. 2) Use pre-existing vault only. 3) Use pre-existing and distribution vault only.
In this Option 1 setup, incoming payments from investors are settled in fiat via a paying agent bank. Once the investors complete the on-boarding and subscribe to this offering, they will be presented with bank account details for the payment of their order.
You will receive these details from the bank that you work together with as a paying agent.
Account Name is the account holder of the bank account where the investor sends the funds for an order. This would typically be the legal entity of the issuer, e.g. ABC Corp.
IBAN is shown to the investor so they know where to send the funds for their order.
BIC is shown to the investor so they can properly route their order to the correct receiving bank.
After you have entered all attributes, click SAVE. You will be brought to the the Asset tab of your newly created offering.
Registrar Snapshot Details
For token offerings on Stellar, this section allows the admin to schedule daily snapshots of token holders of the offered asset at a specific time of day. The list of token holders and their respective holdings is also referred to as "Registrar". Upon distribution of tokens, the system initiates a Registrar snapshot at the defined time and stores it under the "Registrar" tab.
Snapshot Frequency defines the frequency in which a Registrar snapshot is taken. This is pre-set to daily by default.
Snapshot Time defines the time at which the snapshot is taken.
This part is currently under construction and describes how an offering will be created and tokenized once the necessary adjustments are made to this Offering Manager.
In this option the following components are utilized:
Asset tokenization: done on one of the supported EVM chains and managed via Token Tool and the Offering Manager
Custody: done in third-party key management technology or via a custodian
Payment processing: done by a bank that acts as a paying agent or via the regular bank account of the issuer, alternatively payments can be processed via stable coins
Once you clicked "Create New Offering" you will specify the same asset attributes. However, the asset does not have to be created first as in the case of Option 1 above. You will need to select the blockchain from a drop-down menu however.
