Canaan raises USD 90 million in its initial public offering.
The share price of Canaan Inc., a maker of Bitcoin mining machines, fell on its commercial debut, after raising USD 90 million in its initial public offering (IPO) in the United States.
On Wednesday, November 20, the company based in Hangzhou, China, sold USD 10 million of depositary shares for USD 9 each. The shares were traded between 9 and 11 dollars, according to records of the United States Securities and Exchange Commission (SEC).
The amount of this collection represents a lower figure than Canaan, which last October filed an application with the SEC to raise up to USD 400 million. However, the firm lost its main subscriber, Credit Suisse Group AG, before the IPO was launched.
Meanwhile, 28 companies based in China or Hong Kong raised USD 3,250 million in IPO made this year. This represents approximately half of what was collected in the same period of 2018. Therefore, this year’s records have fallen by 6.6% compared to the estimated average base. That compares with a 6.5% overall increase in this year’s records and a 14% increase in the S&P / BNY Mellon China ADR index.
Canaan also submitted an application to register in Hong Kong, just before the regulator indicated that it was “premature” for cryptocurrency-related businesses to be made public in the Asian financial center. Meanwhile, the price of Bitcoin has doubled this year, reaching more than USD 8,000 this November 20. Although its current value represents less than half of its historical maximum in December 2017.
The IPO was managed by Citigroup Inc., China Renaissance Holdings Ltd. and CMB International Capital Ltd. The shares are expected to begin trading on Thursday at the Nasdaq Global Market under the CAN symbol.
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