A Chinese giant Bitcoin mining hardware manufacturer, Canaan Inc., is planning to set its footprint on US shores with an Initial Public Offering(IPO), as reported by Bloomberg on 08 January 2019.
As per the reports, Canaan proudly claims the second spot as the biggest mining hardware manufacturer in China. The company, however, had to forgo its plans of a grand IPO in Hong Kong.
Canaan is a leading Chinese enterprise based in Beijing. Founded in 2013, it sells hi-tech computer equipment, branding itself as ‘Avalon’. Canaan’s specialized electronic chips help potential miners solve complex hash problems and win digital coins.
Jianping Kong, Canaan’s co-chairman, had earlier expressed his view for the company to be listed outside mainland China. Kong, however, did not share any comments on the current undertaking.
Canaan was planning to raise an estimated amount of 1 billion U.S. dollars from its previous engagement with Hong Kong-based stock exchange. However, the listing application lapsed in November 2018.
The company emphasized through anonymous sources that although high-profile meetings are underway, there is no guarantee that solid transactions would take place. Canaan is also keeping the option open of selling shares in New York as early as the first half of 2019.
To cite from another trusted source Finance Magnates, Canaan had recorded lucrative profits in early 2018. The company had also endeavored to list itself on multiple Chinese exchanges, only to face rejection for their applications.
Finance Magnates continued highlighting the tough stance in Hong Kong. With the ongoing bear trend and falling Bitcoin prices, Hong Kong Stock Exchange (HKEX) had become very selective about endorsing the crypto mining firms.
HKEX is being so conservative that they even withheld the IPO of Bitmain, the world’s leading mining hardware manufacturer. They substantiated that this deal is ‘premature’ and without firm regulatory foundations, companies should abstain from raising funds in Hong Kong.
Bloomberg highlighted Canaan’s Hong Kong IPO was backed by market leaders like Deutsche Bank AG, Morgan Stanley, Credit Suisse Group AG and CMB International Capital Ltd. Let’s hope to see that the company’s US IPO would come out with flying colors.
The point we want to headline is that reputed firms have to be tenacious in their efforts towards fundraising. For example, according to Finance Magnates, another crypto mining manufacturer Ebang Communications filed for an IPO with HKEX for the second time after suffering a lapse with the first.