Cryptocurrency exchange Huobi is quietly trying to become the largest shareholder in a public company listed in Hong Kong – a move that, if completed, could open the door for Huobi to become public through a reverse takeover.
According to the participation the disclosure filed by Pantronics Holdings on 21 August at the Hong Kong Stock Exchange, the public company is transferring more than 221 million ordinary shares to Li Lin, the chairman of the Huobi Group, through many of the exchange subsidiaries.
With the amount disclosed, Li is ready to be the ultimate owner of 73.73% of Pantronics as the main substantial shareholder. Based on the deposit, the transaction is traded at HK $ 2.72 (or $ 0.35) on average per share with a total amount of $ 77 million.
The agreement, if approved, could give Huobi the opportunity to hire a public company and then enter the secondary financial market – a process known as a reverse acquisition.
Pantronics, an electronic production service provider founded in 1990 and became public in 2016, has not yet made any official announcement about the completion of the business or any subsequent business restructuring.
A representative from Huobi told CoinDesk that the encrypted exchange is still awaiting confirmation and approval from the Hong Kong Stock Exchange. In this way, the company can not comment on the problem at the moment.
Following the initial announcement, Pantronics has suspended trading of its shares on the stock exchange since August 22, "pending the publication of an announcement regarding a possible offer to be made … on acquisitions and mergers, which is a & # 39; internal information on nature ", said the company at the time.
Gelonghui, a Chinese media covering the financial market, reported for the first time around 18:00 UTC Monday that Pantonics had transferred 73.73% of its property to Li.
Following this news, the price of the Token Huobi, the cryptographic asset of the exchange, immediately jumped eight percent and is now seeing a six percent increase in the last 24 hours, according to CoinMarketCap data .
Huobi's move also comes at a time when several other Chinese private companies in the cryptocurrency space are applying for initial public offerings (IPOs) in Hong Kong, including the producers of bitcoin mining Canaan Creative and Ebang.  Another Bitcoin mining giant, Bitmain, also said it was weighing an $ 18 billion IPO in Hong Kong.
Li Lin image via CoinDesk