China’s 2nd Largest Bitcoin Mining Hardware Producer Plans $1B IPO Launch In Hong KongMay 9, 2018 6:31 pm
CoinTelegraph reported Wednesday China’s second-largest Bitcoin mining hardware manufacturer Canaan Creative is planning an Initial Public Offering (IPO) on the Hong Kong Stock Exchange with the South China Morning Post adding the IPO will take place in Hong Kong and not the US.
The Post story said if the IPO is successful, the company would reportedly be the first ever blockchain-related company to be listed on the city’s markets.
Sources quoted in the story who requested anonymity because Canaan’s listings plans have not yet been made public, told the newspaper the company seeks to raise $1 billion for its IPO.
After Canaan sought to list an IPO on China’s yuen-denominated-A-share market, the Post story said, the attempt fell through following regulators contesting the deal’s proposed valuation.
The report said the company again attempted a listing in 2017 on China’s “New Third Board” market, with the same result, even though the market targets startups and is relatively less stringently regulated.
Canaan Creative, based in the eastern Chinese city of Hangzhou, released unaudited results in January showing a 600-fold increase in its annual net income of 410 million yuan ($64 million) in 2017, the report said.
The majority of Canaan’s clients come from China, the Post reported. China has long been a crypto mining superpower because of its cheap electricity supply.
In 2017, the report said, China was reported to have filed the most patent filings for blockchain technology of any country in the world, and the country is alleged to have accounted for 50 to 70 percent of BTC mining worldwide that same year.
– WN.com, Jack Durschlag