Plans by bitcoin mining gear producer Canaan to checklist shares on the Hong Kong inventory change at the moment are unsure, because the Chinese firm’s software for an preliminary public providing (IPO) expired on Nov. 14 — precisely six months after it submitted the paperwork to the Asian bourse.
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IPO Will ‘Not Happen’ in 2018
Canaan’s $400 million IPO could “not happen this year as there was no update from the stock exchange for a listing hearing,” in response to a report by Reuters, quoting sources accustomed to the matter.
The Hong Kong change has launched a report on IPO functions, delistings and suspensions that reveals that greater than 200 functions have lapsed earlier than they have been finalized. The report doesn’t establish any of the candidates by identify.
Regulators in Hong Kong, together with the inventory change itself, have reportedly raised considerations about Canaan’s enterprise mannequin and future prospects. The firm — based mostly in the “Silicon Valley Bright City” space in northwestern Beijing — controls roughly 15 % of the worldwide marketplace for bitcoin mining chips and pc gear. It ranks second solely to Chinese rival Bitmain, in response to a report from Stanford C. Bernstein & Co. that was launched in February.
However, Canaan has tried to painting itself to buyers as a chipmaker fairly than a devoted bitcoin firm, Reuters mentioned. It has claimed that it’s extra in different areas, past the cryptocurrency area, which can be associated to blockchain applied sciences and synthetic intelligence. The concept was to assuage regulatory considerations across the perceived monetary danger posed by corporations in the cryptocurrency trade.
The Hong Kong inventory change is at the moment Bitmain’s IPO software. The Chinese firm filed the paperwork in September.
Future Listing Still Possible
According to Reuters, the expiration of Canaan’s software doesn’t imply that the Chinese producer’s plans to maneuver ahead with an IPO — initially valued at $1 billion — are utterly useless. The firm, which had roped in Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG and CMB International Capital as joint sponsors of the providing, can nonetheless apply once more with up to date monetary info and take issues from there.
However, this isn’t the primary time that Canaan has didn’t observe via on a deliberate share providing. In 2017, the chipmaker was on the point of checklist on China’s National Equities Exchange and Quotations — an over-the-counter market often known as the New Third Board — however had a change of coronary heart on the final minute and opted to pursue an inventory on the Hong Kong inventory change as an alternative.
The lapsing of Canaan’s newest IPO software comes barely a month after the Securities and Futures Commission of Hong Kong introduced that it will deliver crypto-assets comparable to bitcoin additional inside its regulatory oversight. The regulator plans to impose licensing circumstances on funding corporations which have managed or intend to handle portfolios that make investments in crypto-assets, no matter whether or not such property represent securities or futures. It has mentioned that it plans to take action “in light of the significant risks virtual assets pose to investors.”
Canaan, which was based 15 years in the past, manufactures and sells pc gear underneath the Avalon model, with custom-made chips specifically designed for mining cryptocurrency. The firm’s {hardware} typically finally ends up in distant places housing giant mining swimming pools that depend upon low-cost electrical energy. Canaan posted 1.Three billion yuan ($205 million) of income in 2017, representing a pointy 3,000 % improve from its 2016 outcomes. Net revenue elevated sixfold to $56 million.
What do you consider Canaan’s itemizing prospects? Let us know in the comments part below.
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