Chinese mining company Canaan raised $90 million in an initial public offering (IPO) which took place on 20 November on the us Nasdaq stock exchange.
According to Bloomberg, the company sold 10 million shares at $9 apiece. This is the minimum bid price — as we reported earlier, the shares had to be sold at a price from $9 to $11 according to the application to the Commission on securities and exchange Commission (SEC).
Previously, the company sought to raise significantly more funds. After failing to IPO in Hong Kong last year, Canaan has applied in the United States with the goal to raise $400 million.
However, prior to the IPO the company lost its biggest underwriter — Bank Credit Suisse. The result is a sum of the IPO was reduced to $100 million (though the documents contained no mention of Credit Suisse). As reported by Bloomberg, citing its sources, “Credit Suisse doubt that the offer will be able to attract enough investors.”
Thus, Canaan became the first mining company to IPO. The company has managed to circumvent its main competitor — Bitmain — which is also planning to hold an IPO in the United States with the support of Deutsche Bank. Like Canaan, Bitmain in the past year failed to obtain permission to conduct IPO in Hong Kong.
Source — CoinSpot