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The Chinese cryptocurrency mining company, Ebang International Holdings Inc., has redrafted the documents for a public stock sale with the Hong Kong stock exchange. This is after his first submission failed to proceed. The money raised by the initial public offering (IPO) will go towards the development of new non-cryptographic mining and blockchain hardware, among a myriad of other novelties.
Development funds to be collected
Ebang did not disclose how many shares the company intends to sell or how much each share will cost. Furthermore, it is not clear how much money Ebang intends to increase. Reports at the time of the initial June application indicated a figure of around $ 1 billion. The first deposit has expired since then and therefore the need to reapply again. The funds that will be collected will go towards the development of new mining equipment and Blockchain advancement
Ebang – based in Zhejiang province, in eastern China – manufactures and sells equipment for the extraction of cryptocurrencies and telecommunications network devices under the Ebit brand. According to the latest listing documents, Ebang recorded 2.14 billion yuan ($ 310 million) of revenue in the six months to June 2018. The net profit increased 12 times to 931.72 million yuan ( $ 135 million), but profits declined rapidly during the third quarter of 2018, when global cryptocurrency markets plummeted. The third quarter of 2018 saw almost all cryptocurrency platforms register a collapse in market prices.
The company owns 11% of the global Bitcoin mining chip market, according to the iResearch report. During the second quarter, it recorded significant reductions in revenues and profits compared to the previous year, which ended in June.
One of the requirements for companies that intend to be listed on the stock exchange is that they provide financial information for a period of no more than six months from the date of submission of the application. The Hong Kong regulatory authorities, including the stock exchange, have raised concerns about the business model and future prospects of cryptographic companies.
Ebang is a major player in the Chinese cryptocurrency industry. All eyes will follow closely the process to see if the main player in the Chinese digital currency sector will be listed.
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