According to Caixin International Edition, Canaan (hereinafter referred to as Jianan Zhizhi), the second largest bitcoin mining machine manufacturer in China, is planning an overseas IPO, and the destination may be Hong Kong or New York.
Previously, Canaan Yunzhi also reported the IPO news, but it was twists and turns, and it didn't happen in the end.
In June 2016, Luyitong (300423) planned to acquire Canaan Zhizhi through a major asset reorganization, and planned to acquire 100% equity of Canaan Zhizhi at a price of 3.06 billion yuan, so as to save the decline in performance. And Jianan Yunzhi also wants to use this major asset restructuring to land on the Shenzhen Stock Exchange in a disguised way.
However, since the merger and acquisition plan showed that the shareholding ratio of the top two shareholders was close after the completion of the transaction, there were suspicions of avoiding backdoors; at the same time, Canaan Zhizhi was overvalued at the time and promised high performance. In the end, the stock exchange sent three letters to inquire about the asset restructuring, and Canaan Creative’s listing plan came to an end without a problem.
In August 2017, Jianan Zhizhi submitted a listing application on the New Third Board, but gave up listing again after 2018.
In February of this year, Yao Yongjie, one of Canaan’s investors, revealed that Canaan is planning to go to Hong Kong for an IPO. It is reported that if the IPO in Hong Kong is finalized, Canaan will become the first "pure blockchain" concept stock in Hong Kong stocks.
So far, Canaan seems quite confident about the IPO.
This confidence largely comes from its good performance.
According to Canaan’s official data, in 2017, Canaan’s mining machine sales exceeded 1.2 billion yuan, and its annual net profit exceeded 300 million yuan. The net profit increased by 125% in two years. It is expected to exceed 10 billion in sales and sales in 2018. 5 billion profit.
At the same time, since last year, the blockchain market has rapidly become popular, and many companies in the industry are eager to try the capital market. Bitmain, also a mining giant, has also reported that it will conduct an IPO. Wu Jihan said in an interview with American media in August 2017 that Bitmain was considering an initial public offering, and its valuation should be at least "billions of dollars."
It is worth noting that although 95% of Canaan Zhizhi’s online sales revenue has come from the domestic market in recent years, Canaan Zhizhi finally chose to conduct an IPO in Hong Kong or overseas.
The main reason is at the national level. Nowadays, financial regulation has become increasingly strict on encrypted digital currencies. Nearly 100% of Canaan’s revenue comes from mining machine sales. As long as the company is involved in industries related to encrypted currencies, it will be difficult to go public in recent years.
