Canaan Inc, a major manufacturer of bitcoin mining equipment, has filed with the Securities and Exchange Commission for permission to launch a $1 billion IPO and to list on the Hong Kong Stock Exchange. The IPO is sponsored by Morgan Stanley, Deutsche Bank AG, CMB International Capital Ltd and Credit Suisse Group AG. The start of trading is scheduled for July.
The company applied for an IPO back in 2016 in China, but had to cancel plans due to strict regulatory measures. The company also considered listing on China's NEEQ over-the-counter market, but changed plans in favor of a Hong Kong ICO.
Canaan was founded in 2013 and is headquartered in Hong Kong and reported $205 million in revenue last year. Net profit increased sixfold to more than $56 million. If admitted to listing, Canaan will launch Hong Kong's first cryptocurrency IPO.
Canaan has a market share of about 15 percent in the bitcoin mining hardware market, including chips and computer hardware, according to a report from Sanford C. Bernstein & Co. Its main competitor is Bitmain, which has 70 percent of the market. The third common competitor is the American company Bitfury.
In March, China introduced tax breaks for chip makers to reduce dependence on imports of foreign semiconductors amid trade tensions with the United States, resulting in Chinese chipmakers receiving more international orders.
Canaan has more than 200 employees in Beijing and Hangzhou, where it sells ASIC chips and other equipment under the "Avalon" brand. One of the company's executives, Yang Ping Kong, said in April that most of the company's equipment is sold for use in energy-rich areas of China, where the world's largest Bitcoin mining rigs are located.
According to https://ethereumworldnews.com
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