Peptidyl-alpha-hydroxylglycine alpha-amidating lyase that catalyzes an essential reaction in C-terminal alpha-amidation of peptides. Mediates the dismutation of the unstable peptidyl(2-hydroxyglycine) intermediate to glyoxylate and the corresponding desglycine peptide amide. C-terminal amidation of peptides such as neuropeptides is essential for full biological activity. a [peptide]-C-terminal (2S)-2-hydroxyglycine = a [peptide]-C-terminal amide + glyoxylate Confined to cell bodies. Widely expressed. In mature larvae, it is ubiquitously expressed with a low expression in all cells and a stronger expression in a subset of neurons. Colocalizes with neuropeptide proctolin. In adults, weak expression is observed in most neuronal cell bodies and in scattered large cells throughout the protocerebrum and also in the subesophageal neuromeres (at protein level). N-glycosylated. Belongs to the peptidyl-alpha-hydroxyglycine alpha-amidating lyase family.