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Canaan creating options for US listing: report
Posted on Tuesday, 08 January 2019 13:22
Canaan Creative could list in the US, Bloomberg has reported, after the Chinese company viewed as one of the world's largest cryptocurrency mining equipment manufacturers let its Hong Kong application lapse in November.
Sources close to the matter told the news provider the bitcoin hardware maker is only in the early stages of discussing the possibility and there is no certainty that deliberations would lead to an overseas filing.
This is the second time the blockchain server and application-specific integrated circuit (ASIC) microprocessors designer has changed its mind on a listing venue.
It originally aimed to debut on China’s National Equities Exchange and Quotations, the over-the-counter market known as the New Third Board, before ditching plans in favour of one in the Hong Kong.
The subsequent preparations were scaled down from a reported value of USD 2.00 billion to USD 400.00 million as regulatory uncertainty and slumping bitcoin prices weighed on the sector.
Canaan then let the application lapse, interestingly just weeks after Hong Kong’s Securities and Futures Commission (SFC) introduced new regulations governing companies that manage virtual assets.
At the time, Stephen Chan of the law firm Dechert told Reuters: “Specifically because of the SFC’s announcement there will be quite a lot of changes in terms of the outlook of what they [cryptocurrency miners] can do.”
However, rivals Bitmain Technologies and Ebang still have their own initial public offering (IPO) application proofs filed with the bourse.
In August, the former completed a pre-IPO funding round worth USD 1.00 billion from SB China Venture Capital, China International Capital and Tencent Holdings.
Zephyr, the M&A database published by Bureau van Dijk, shows this is currently the largest financing by a sector player - be it trading platforms or hardware makers or wallets - on record.
Several other companies have listed this year, including the UK’s Argo Blockchain and Tymlex of Australia.
© Zephus Ltd