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Crypto mining manufacturer Canaan Creative announced that it would endeavor to raise $100 million through its initial public offering (IPO) on the Nasdaq. According a report published by Renaissance Capital, Canaan seeks to distribute 10 million equity shares at a price between $9 and $11.
Canaan creative is a cryptocurrency mining manufacturer based in Hangzhou, China. Recently, it approached U.S. Securities and Exchange Commission (SEC) to update its IPO application. Officials at Canaan are hopeful that with a targeted $100 million turnaround through the IPO, the company will be able to register itself at a market value of around $1.6 billion, mostly thanks to the rise in the price of Bitcoin in 2019.
Originally, Canaan had planned to file for a $400 million offering in October with the SEC but the desperate move was revised by the officials of the company who had subsequently brought that figure significantly down to $100 million. Interestingly, the company had planned to raise a $1.5 billion in 2018.
After its failed attempts to register itself on other stock exchanges based in Honk Kong and the mainland China, Canaan plans to go live on the Nasdaq stock exchange on 20th of November. If successful, this would position the company as the first crypto mining company in the history to go public.
It is predicted that the latest filing will go unhindered as Canaan has provided names of big companies as its major underwriters when it filed for the Nasdaq IPO. These companies include Galaxy Digital and Citigroup, as well as Chinese investors, such as Huatai Securities and China Renaissance.
Other Crypto Companies Seeking IPO
Canaan’s major rival, Bitmain, has also been focusing on obtaining an IPO approval but has witnessed a tumultuous start to its bid to go live as a public company on a stock exchange. Like Canaan, it had failed to launch itself on the Chinese stock exchange as well.
Another blockchain company going public is OneConnect Financial Technology. OneConnect belongs to a conglomerate based in Shenzhen called the Ping An Group. After receiving financial underwriting from the Japan-based SoftBank, OneConnect is poised to venture into fintech and blockchain spheres of finance. It has already filed for an IPO which is also valued at $100 million.
Cryptocurrency in general has been hitting new lows in 2018 and partially in 2019 with price and demand generally plummeting across the world. Therefore, it’s not really a surprise that cryptocurrency-oriented companies hardly push themselves on stock exchanges as public companies.