China’s Crypto Mining Giant, Canaan, to offer an IPO in November in the US
Unconfirmed reports have reported that Canaan, a Chinese mining giant for crypto, aims to list in the US market as a publicly-traded company in November 2019.
According to the source that is aware of the matter, this Avalon miner producer will be issuing 126 million shares, and the firm is said to have a valuation of $1.5 billion. The issuance of shares will be brought to an end this Oct. 20.
Canaan is said to have applied to offer an IPO with the SEC. Sources have it that the company has completed all the necessary procedures to issue an IPO, and it would be valued at around $2 billion to $3 billion. However, this would be dependent on the specific results of inquiry from investment institutions.
One of Three Chinese Mining Giants
The company has been trying for three years now to seek public investment. If its valuation is confirmed, then it will be among the three biggest Chinese mining machine giants that have ever gone public (Canaan, Bitmain, and Yibang).
The co-lead director of Canaan, Kong Jianping, said that the US securities and exchange platform has a pretty good understanding of cryptocurrency and the blockchain technology. Hence the compliant companies that are working in the crypto space can go public in foreign soil (US).
Before Canaan had filed for an IPO in the US, all the three Chinese mining giants had failed to list in Hong Kong's IPO. The trio plans to register in the US market, however, as there is a soaring demand for mining machines in 2019.
Canaan's sales director told 8btc that the company had received intent letters that were demanding 500,000 units of the A11 and A10 latest miners. The number is even expected to go much higher in 2020. Canaan's road to an IPO has never been smooth. The firm once tried listing on the Shenzhen Stock Exchange in 2016, but the plans failed because the firm did not satisfy all the required requirements.