Bitcoin Mining Company Canaan Falls Short Of Its Already Slashed IPO Target, Hitting Only $90M
- Canaan cut down its IPO target from $400 million to $100 million but raised only $90 million
- The shares (ADS), sold at $9 apiece, the lowest marketing range and will start trading on Nasdaq on Thursday
Canaan Inc., a Bitcoin mining machine producer has raised just $90 million after cutting down its IPO target from $400 million to $100 million.
Founded in 2013, Beijing-based company sold 100 million American depositary shares (ADS), US dollar-denominated equity shares of a foreign-based company available for purchase on an American stock exchange, for $9 per share on Wednesday.
Citigroup, China Renaissance Holdings Ltd., and CMB International Capital Ltd., led the offer. On Thursday, the Nasdaq Global Market is expected to begin trading under the symbol CAN.
The US Securities and Exchange Commission (SEC) filings show the shares were promoted for $9 to $11 apiece, meaning they were sold at the bottom of its range.
Apart from lowering the targeted raised amount, Credit Suisse Group AG, the lead underwriter, backed out before the deal was launched.
Earlier this year, the report of Canaan preparing to file an IPO in the US market first came into notice after it shelved its Hong Kong plans, whose US$1 billion targeted IPO application lapsed in November.
Its competitor, Bitmain Technologies, the largest maker of mining chips for the industry also filed for Hong Kong IPO last year. It also gave up its IPO plans amidst the lay-offs and leadership reshuffle. But just like Canaan, Bitmain has reportedly confidentially filed for a US-based IPO with the SEC after the removal of Co-founder and CEO Micree Zihan.