Bitmain Technologies, Ebang, and Canaan Creative were intended to go public before the year-end and even filed IPOs in Hong Kong. However, Canaan, a leading BTC mining manufacture in China tumble its application on Thursday, due to the failure of listing completion during the last six months. Reports indicate that the other two largest bitcoin mining equipment maker, BitMain and Ebang may follow the suit.
Status of IPO Application
• Canaan first submitted its application in May
• Bitmain Technologies had filed its application on Sept. 26
• And Ebang submitted its paper agenda on June 24
Circumstances of Delay
Canaan has already surpassed its six months but the circumstances of the delay have not been disclosed yet. BitMain and Ebang are closer to the duration of six months. An official of eToro trading platform spots, “Ebang may lapse its IPO application”.
Mr. Japser Lee, MD at eToro explains that;
“Fundamentally, there is no big difference between Canaan and Ebang. If Canaan couldn’t respond to questions regulators have had, I don’t see how Ebang would be able to do so,”
In concern to Canaan’s IPO delay, Philippe Espinasse, a banking expert strongly points “due diligence and disclosure”. Reportedly, Canaan has already broken down its target from $1 billion to $400 million and didn’t respond to the application issue. Furthermore, it is predictable that the thinning market wouldn’t allow Canaan to prepare a new valuation in time.
This often happens because of issues related to due diligence and disclosure, or because of market conditions when the valuations expected by legacy shareholders are at odds with what investors are prepared to pay.
On the other hand, Zennon Kapron who is the founder of Kapronasia, Shanghai-based financial, and consulting firm predicts that these firms may lapse their application. It reads as;
“If it is a conscious decision by the government to let it lapse, then it is certainly not very positive for Bitmain or Ebang to succeed in their listing,”
He continued pointing the scenario as a controversial matter and said,
Getting an approval is never going to be easy. So the fact that there is a delay is not entirely surprising.”
2018 seems tougher than these firm might have ever imagined. First, the market is plummeting over and over again and now it may eventually let their IPO application lapse.
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