- Ebang files for IPO at Nasdaq to raise up to $125 million
- Ebang posted net loss in Q1 2020
- The recently passed Holding Foreign Companies Accountable Act could make it difficult for Chinese companies to get listed on a U.S. exchange
Despite decreasing sales and uncertainty of the crypto markets this year, Chinese mining company Ebang is slated to get listed on Nasdaq this June 26, becoming the second mining firm to be listed in a United States stock exchange.
Chinese news outlet The Block Beats revealed the listing, with a ceremony to be held on the evening of the same day in Hangzhou. There will be a virtual striking of a gong during the ceremony, a Chinese tradition in celebrating IPOs.
Cointelegraph reported Ebang is aiming to raise up to $125 million on a sale price of $4.50 to $6.50 on the 19.3 million Class A ordinary shares that will be offered. A successful IPO will put Ebang’s market value at around $800 million.
When the crypto markets crashed, so did Ebang’s sales, posting $109 million in revenue in 2019 from $319 million in 2018. The crypto mining firm had a net loss of $2.5 million in Q1 2020, but cited non-recurring local tax rebates as the reason.
Ebang is set to follow Canaan, the first mining firm to launch an IPO in the U.S. Canaan raised $90 million in an IPO last year. Notably, Canaan and Ebang both attempted and abandoned plans to conduct IPOs in Hong Kong. Bitmain, the largest crypto mining firm, also failed to get listed on the Hong Kong Stock Exchange.
Recent Chinese IPOs in the U.S. were well received. However, Bloomberg reported, and Ebang also noted in its prospectus, the current political situation between China and the U.S. might pose a problem. The recently-passed Holding Foreign Companies Accountable Act by Sen. John Kennedy (R-LA) and Sen. Chris Hollen (D-MD) would boost oversight on foreign firms. Furthermore, it will require public companies to disclose if they are owned or controlled by a foreign government. Kennedy specifically said the legislation is aimed at China and Chinese firms.
Bloomberg said the bill could lead to Chinese companies not being allowed to list in U.S. exchanges. Ebang conceded increased regulatory access to audit information could make investors uncertain. “The stock price could be materially and adversely affected,” the Chinese crypto mining firm added.