Crypto-mining giant Canaan Creative lays out plans for its US IPO

• The crypto mining firm plans to collect $100 million from the IPO.
• Canaan will be the first China-based mining firm to witness public trading in the US.

Canaan Creative, a Chinese cryptocurrency mining giant, has recently announced terms for its United States initial public offering (IPO), which is scheduled later this month. According to a report by Renaissance Capital, Canaan Creative announced its plans to gather $100 million. The mining giant would reportedly offer 10 million American depositary shares (ADS) at a price range from $9 to $11. As a result, the company’s overall market value will be around $1.6 billion, with an enterprise value of $1.4 billion.

ADS is a US dollar-denominated equity share of a foreign-based firm available for purchase on an American stock exchange. Back in October,  Canaan Creative filed with the US Securities and Exchange Commission (SEC) for an IPO intended to raise $400 million, expecting to be listed on the Nasdaq under the ticker CAN. Canaan will be the first China-based mining firm to witness public trading in the US if they are successful.  

As a part of the registration process to conduct IPO in the US, Canaan declared its Q3 net profit, which was 94 million yuan ($13 million). The company has raised about $134 million in the first nine months of 2019. However, the weaker performance earlier has led to a total comprehensive income loss of around $31 million.

Along with Bitmain and Yibang International, Canaan is one of the three major Chinese crypto mining companies. Canaan had previously tried to launch an IPO in Hong Kong and China but failed miserably due to regulatory pressures. Bitmain, which enjoys a 75% market share of the crypto hardware market worldwide, also attempted to complete an IPO but in vain.