Reasons Luca Netz Might Feel ‘Let Down’ If Pudgy Penguins Doesn’t Go Public in the Next Two Years

Pudgy Penguins is poised to achieve a record $50 million in revenue this year, as per CEO Luca Netz. This goal represents an extensive effort to feature the beloved IP in unconventional spaces for Web3, including arcades, storybooks, and major retailers like Walmart. 

Netz is already focused on Pudgy’s significant expansion toward Wall Street in the upcoming two years. 

In his discussion with Decrypt, Netz shared his vision of having Pudgy Penguins shares traded publicly by 2027. 

“I would love to [go public] in the next two years,” he noted, stressing that the timeline for a public listing depends on Pudgy’s revenue growth. “Not achieving an IPO within two years would be a personal disappointment.”

If the plan doesn’t materialize by then, “hold me accountable,” Netz remarked.

Pudgy’s initiative to go public coincides with the firm exploring multiple business avenues amidst an IPO resurgence in the U.S., fueling substantial capital influxes, particularly into tech enterprises. 

So far, over 220 companies have gone public this year, representing a nearly 90% increase from the 117 organizations that listed on the U.S. stock market within the first eight months of 2024, according to market research source StockAnalysis.com.

In light of this IPO boom, numerous digital asset companies have entered the market, applying for public offerings as U.S. President Donald Trump relaxes federal regulations for the sector. 

Earlier this June, stablecoin issuer Circle made headlines with its massive IPO, generating over $1 billion in profits. Just two months later, crypto exchange Bullish went public on the New York Stock Exchange, while competitors Gemini and Kraken prepare to follow suit. 

Pudgy aims to leverage the rising public interest in firms linked to digital assets by collaborating with financial experts to enhance the accessibility of Pudgy Penguins and its decentralized-finance token PENGU for both retail and institutional investors.

Earlier this year, the company facilitated asset manager Canary Capital’s initiative to launch an exchange-traded fund tracking the prices of the PENGU meme coin and Pudgy Penguins NFTs. Recently, the Pudgy team has been in discussions with public companies to hold PENGU on their balance sheets, with the results expected in the next three months.

“The insights into traditional finance genuinely excite me,” Netz expressed. “There’s an influx of capital and enhanced accessibility.” 

Therefore, the Pudgy team, based in Miami, is contemplating spending more time in New York, the center of public markets. 

“Each time a few of us visit, we accomplish in two days what would require five days locally,” Netz noted. “Every day, every hour, every minute is vital, and New York’s rapid pace is essential for success.”

No public listing? No issue 

While it remains uncertain if Pudgy will secure IPO investors by the end of 2027, a less complicated—though riskier—option exists that allows traders to invest in Pudgy Penguins without comprehensive regulatory obligations: tokenizing the stock. 

When asked if Pudgy Penguins might soon consider tokenizing shares of its stock to trade on an on-chain equities platform like xStocks, Netz replied: “I can’t comment on that, but you’re exploring a very promising avenue. 

Nevertheless, he revealed that the NFT project will remain selective in its partnerships as it seeks avenues for growth. 

“There’s a lot of low-quality, questionable capital available,” Netz commented. However, he added: “I’m entirely interested in collaborating with the most reputable firms… those for whom a billion dollars is the threshold for meaningful impact.”