Published: 2018-11-15 07:24:38
According to an update at the HKEX’s database on Thursday, the status of Canaan’s IPO application is now marked as “lapsed,” six months after it first submitted the filing. The company was reportedly seeking to raise $1 billion but a report from Reuters said Canaan has hence scaled down the plan to raise about $400 million.
Based on listing rules and guidance provided by the HKEX, an IPO issuer can apply to reactive the filing after the status becomes inactive should it decide to. But if the reactivation is launched after three months since it has become lapsed, the firm has to submit a new application and the previous filing would be considered as outdated.
A co-founder of Canaan Creative declined to comment on the issue.
The status change comes just weeks after the Securities and Future Commission (SFC) in Hong Kong enacted a new regulation on firms that put cryptocurrencies under management.
The SFC issued a circular early this month that requires companies that invests more than 10 percent of its gross portfolio in cryptocurrencies to be registered with the regulator, regardless whether such assets are considered as securities.
A report from Reuters citing anonymous sources further said the HKEX and financial regulators in Hong Kong had raised questions over the company’s model given the volatile nature of cryptocurrencies. As such, the report said the IPO might not go ahead this year with no updates from a listing hearing with the HKEX.
The status change also comes at a time when other China-based bitcoin mining companies are seeking to go public in Hong Kong including Ebang and the Beijing-based mining giant Bitmain, which filed an IPO application in September.
Avalon image courtesy to Canaan Creative
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