The China-based Ebang International has submitted a revised prospectus for a U.S. IPO as it plans to raise over $100 million by listing its shares on the Nasdaq Global Market under the EBON ticker.
After the latest Bitcoin halving in May 2020, the BTC mining rewards have already reduced to half at 6.25 BTC per block. With the mining costs rising, Bitcoin miners are finding it increasingly difficult to realize some profits. However, in an interesting move, China-based Bitcoin mining machine maker – Ebang International – has filed an Initial Public Offering (IPO) in the United States. The mining company also submitted its revised prospectus to the Securities and Exchange Commission (SEC) on Wednesday, June 17.
Ebang said that it plans to list its shares on the Nasdaq Global Market under the ticker symbol EBON. Through this U.S. IPO, the company plans to raise $106 million in total with its share price in the range of $4.50 to $6.50. If successful, Ebang will the second Chinese mining company after Canaan, to list on the U.S. Stock Exchange.
In its revised prospectus, Ebang has also released its “estimated preliminary unaudited” financial results for Q1 2020. The firm has registered 6.1% growth year-on-year with $6.4 million in revenue. Thanks to the successful mining outlook during the first quarter of 2020.
However, Ebang’s net loss for the first three months of 2020 stands at $2.5 million. This is after recording $5.9 million in revenue costs and other operational costs.
Will Ebang Have Chances for Successful IPO?
Post the coronavirus pandemic and the crash in the U.S. Economy, the United States has brought stricter regulations in place for the public listing of Chinese companies in the U.S. markets. Post the pandemic, the economic tensions between the two giants have escalated further compared to the earlier trade war.
Last month, on May 20, the U.S. Senate introduced the Kennedy Bill to increase regulatory access to audit information for the Chinese companies. Speaking to Bloomberg, Ebang said:
“Enactment of the Kennedy Bill or any other similar legislations or efforts to increase U.S. regulatory access to audit information could cause investor uncertainty for affected issuers, including us, and the stock price could be materially and adversely affected”.
This is the second attempt from Ebang to file for an IPO in the U.S. market. Earlier in April 2020, Ebang had submitted its initial prospectus. However, Ebang said that its independent auditor wasn’t inspected by the Public Company Accounting Oversight Board (PCAOB).
“This lack of PCAOB inspections in [China] prevents the PCAOB from regularly evaluating our independent registered public accounting firm’s audits and its quality control procedures. As a result, investors may be deprived of the benefits of PCAOB inspections,” Ebang said.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
