The maker of Avalon Bitcoin mining rigs, Canaan Creative is pondering a fresh attempt to go public. The company is considering to try anew to go public by listing itself in the Shanghai Stock Exchange.
Coindesk claims that Canaan’s shareholders are formulating a plan to register the firm on the freshly launched Science and Technology (Sci-Tech) Innovation Board. The board is an organ of the Shanghai Stock Exchange. Previously, Canaan had made numerous failed attempts to get listed in both China and Hong Kong.
However, the anonymous source revealed that the shareholders are yet to make the final decision as consultations are still ongoing.
The developments come just less than a month after the launching of Science and Technology (Sci-Tech) Innovation Board. The board is similar to Nasdaq and was formed to cater for the for Chinese technology startups.
Another insider said that the firm has been evaluating the application in both the US and China. This is after the lapse of a request to join the Hong Kong Stock Exchange. According to the insider, Canaan has been in communication with New York Stock Exchange as well as Nasdaq. The primary shareholders will give their final decision before the year ends.
The fourth biggest stock exchange in the world, Shanghai exchange, officially unveiled the new trading board at the start of the month. Four months earlier, Chinese president Xi Jinping had invented a strategy to aid local tech startups to get funding easily.
Canaan’s Continued Support by Primary Shareholders
The fresh attempt to go public comes a few months after Canaan conducted a funding round. STCN reported that the company raised a lot of hundred dollars propelling the firm’s value to several billion dollars.
However, the anonymous CoinDesk source indicated that the funding round was purely a current shareholders affair. He said:
There was a fundraiser, but there are no new investors because it all came from old shareholders’ own pockets.
The continued support by the existing shareholders shows they are confident with the company’s trajectory trend. However, the lack of fresh participants is a sign that people are afraid of investing in mining. The current slump in crypto prices and tough regulations by governments are some of the reasons. The anonymous source summarized the sluggish funding table:
Based on the current bearish market situation, it’s just too difficult to gain investment.
Positive Interactions with Securities Regulator
Canaan has previously canceled several attempts to register in Mainland China because of stringent regulations. However, in the recent past, the firm seems to be in good books with the regulators.
In April 2018, China Securities Regulatory Commission vice president, Yang Jiang, visited the company’s head office in Hangzhou. He expressed support for Canaan becoming a public company. He said:
Whatever the use of your chips, essentially you are still a chip company. I hope that you will go public on the domestic market.
Will Canaan succeed in becoming a public listed company in Shanghai exchange? Let us know in the comments section.