Chinese bitcoin miner Ebang plans to launch an initial public offering on the US-based Nasdaq on 26 June. The company hopes to raise more than $80 million during the IPO.
According to the updated prospectus filed by the SEC on June 17, Ebang applied for listing on Nasdaq and expects its IPO price to range from $4.5 to $6.5 for each of the 19.3 million ordinary Class A shares. Thus, the company hopes to raise between $86 million and $125 million depending on investor interest.
According to the results of the IPO, Ebang can get a market valuation of about $800 million.
If all goes well, the Hangzhou-headquartered company will be the second manufacturer of mining equipment to have its IPO in the United States. The mining giant Canaan was the pioneer in this field, debuting on Nasdaq in November 2019 and managing to raise $90 million within the IPO. However, it is difficult to call this placement successful. Initially, Canaan planned to raise $400 million, later it lowered plans to $200 million, but even this bar had to be lowered due to market conditions. Since the IPO, Canaan shares have fallen significantly, largely due to allegations from investors that the company did not reflect the significant factors affecting its financial performance. Recently, Canaan shares reached a record low below $2 per share, with its IPO price being as high as $9 per share.
According to the recent prospectus, Ebang forecasts a loss of $2.5 million for the first quarter of 2020. Canaan also reported a net loss of $5 million for the same period. The reasons for the losses were factors such as a decrease in demand for mining equipment, the outbreak of COVID-19, which slowed down the economic development in China.