Chinese Bitcoin Miner Canaan, Inc., which filed for a $400-million initial public offering (IPO) in the United States, is now looking to raise only up to $110 million in the IPO.
In its amendment filed with the U.S. Securities and Exchange Commission (SEC), the world's second-largest Bitcoin mining hardware maker revealed plans to sell 10 million American Depositary Shares (ADSs) at an estimated IPO price per ADS of between $9.00 and $11.00.
The company also said it has applied for listing its ADSs on the Nasdaq Global Market under the ticker symbol "CAN." Each ADS represents 15 Class A ordinary shares, par value US$0.00000005 per share.
The underwriters have a 30-day option to purchase up to an aggregate of 1.5 million additional ADSs from Canaan at the IPO price less the underwriting discounts and commissions.
The company plans to use the net proceeds from the offering primarily for research and development for ASICs related to AI algorithms and applications, blockchain algorithms and applications, supply chain optimization and repayment of debts, making strategic investments and establishing overseas offices as well as general corporate purpose.
Canaan's executive officers, directors and certain option holders, have agreed with the underwriters not to sell, transfer or dispose of any ADSs, ordinary shares or similar securities for a period of 180 days after the date of the prospectus,with certain exceptions.
Beijing-based Canaan's U.S. IPO filing comes after it shelved plans for an IPO in the Hong Kong stock exchange, which was filed in May 2018, with plans to raise about $1 billion. It let the Hong Kong application lapse in November 2018.
In 2016, the company had unsuccessfully tried to gain a listing in China through the purchase of electric equipment maker Luyitong, but the plan was canceled after regulators opposed the deal for being overvalued.
In 2017 too, it applied for a listing in China's New Third Board market amid the country's ban on trading cryptocurrencies and initial coin offerings or ICOs, but in vain.
Canaan's biggest domestic rival Bitmain Technologies Holding Co. as well as the smaller rival Ebang International Holdings Inc. also had filed for Hong Kong IPOs last year. Bitmain, the world's largest cryptocurrency mining company, has also unobtrusively filed for an U.S. IPO. Bitmain, Canaan, and Ebang are also major mining hardware producers.
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