Ebang International Holdings, the Chinese manufacturer of ASIC equipment for Bitcoin mining, expects to raise USD 70 million from the sale of 16 million Class A shares. The sale of the shares will be made through an Initial Public Offering ( IPO), for which it established a price of USD 5 per unit.
In a statement, published on February 11, 2021, the company explained that it does not rule out increasing this offer to a maximum of 19.2 million shares. He specified that each of these units consists of a Class A share, as well as a guarantee to buy half of a Class A share of the company.
“For every two purchase orders there will be one compensation of USD 5.25 for each Class A share, ”the company said in the document.
The company expects to close this Initial Public Offering on February 16, 2021. However, it clarified that it may have one or more additional closings until the maximum number of shares is sold, the maximum number of shares is sold, or the offer is canceled. “Our Class A common shares are traded on the Nasdaq Global Select Market under the symbol“ EBON ”, indicates the company.
The company expressed its intention to use the resources obtained by the IPO in the research, development, production and sale of ASIC equipment and cryptocurrency-related devices, as well as in the expansion of its bitcoin business. They will also be used for the establishment and operation of cryptocurrency mining farms, among others.
It is worth explaining that an Initial Public Offering refers to the sale of shares to investors for the first time. The IPO is initially produced in the primary market, to later be commercialized in the secondary market.
Ebang signs purchase order agreements
The company also announced that on February 11, 2021, it signed securities purchase orders with institutional investors. These agreed to acquire a total of 14 million shares, at the close of the Initial Public Offering .
The shares and purchase orders have been registered in accordance with a registration statement defined in accordance with the provisions of the United States Securities and Exchange Commission (SEC) on February 10.
As it will be recalled, in June 2020 the company submitted an application to be listed on the United States stock market under the Nasdaq EBON symbol. He hoped to raise $ 125 million through the IPO. The company decided to enter Nasdaq, following an unsuccessful attempt to carry out a USD 1 billion IPO in Hong Kong in 2018.
If achieved, Ebang would become the second mining company listed. on the exchange after the participation of Canaan -another manufacturer of Bitcoin mining equipment-, which participated in November 2019 with the Nasdaq symbol: CAN.
During its commercial debut , the price of these shares registered a resounding fall, after the IPO will raise only 90 of the USD 400 million that it aspired.
Ebang will activate its own exchange in the first quarter of 2021
The company revealed on January 3, 2021 that for the first quarter of the year it will activate its own exchange of cryptocurrencies. Ebang’s foray into the world of exchange houses raised the price of its shares on the Nasdaq New York index by 23%.
Then it indicated in a statement that the internal tests of the exchange already completed. Now, according to the schedule, Ebang will carry out public evaluations to activate its exchange system, CriptoNoticias reported.