Canaan, a China-based Bitcoin mining machine maker, has raised $90M through an Initial Public Offering (IPO) in the US.
The Hangzhou, China-based company sold 10M American depository shares at $9 per share on Wednesday, which was the lower limit of the pricing range it had declared at the time of IPO filing of $9 to $11 per share.
The offer was underwritten by Citigroup, China Renaissance Holdings, and CMB International Capital.
In its application made in October to US Securities and Exchange Commission in October, Cannan had set a target of raising $400M. Its lead underwriter at the time of filing, Credit Suisse Group, bailed out before the launch of the IPO.
About a year ago, Canaan shelved its plan to apply for listing on the Hong Kong Stock Exchange. It turned out to be a correct decision as the Exchange later said that the crypto market was still at a premature stage of development, and hence, it would not be prudent for it to list companies involved with cryptocurrency and expose the general public to risks associated with them.
The Hong Kong stock exchange’s refusal to list crypto companies has to do with volatility in cryptocurrency prices. For example, Bitcoin has recovered this year to double its value to $8000. It is still less than half of its all-time high price of December 2017.
A total of 28 China and Hong Kong-based companies have launched IPOs in the US this year, which is about half of the number for the same period in 2018. These 28 firms have between them raised $3.25 bn. On a weighted-average basis, the number of listings has fallen by 6.6% on a weight-average basis.
Trading in Canaan shares is expected to begin from Thursday on the Nasdaq Global Market. The symbol for Canaan shares will be CAN. If you want to invest in Bitcoin then you can invest it through 24Stocks Trading Platform to make your trading more easy and secure. It is a unique platform that can make you earn profit from Bitcoin. For further details, you can check out the Bitcoin price projections to know more about the same as of now.
