Bitcoin miner maker Ebang International raises $ 101 million on NASDAQ
Ebang International Holdings Inc., the company behind the popular bitcoin mining machines Ebit has enumerated successfully their Class A common shares on the NASDAQ Global markets exchange.
The company becomes the second Chinese cryptocurrency company to list its shares publicly on a U.S.-based exchange. after Canaan Creative made its first IPO last year raising $ 90 million. Ebang, which listed its shares on NASDAQ on Friday, raised close to $ 101 million by selling 19,264,337 Class A common shares at the starting price of $ 5.23 per share. The company chose to offer 59,000 fewer shares than anticipated according to its June 17 revised IPO request to the SEC.
In its presentation of IPOs in June, Ebang cited a price range of between $ 4.50 and $ 6.50 for its IPO that would have seen the company raise between $ 87m and $ 125m. Following its listing on the NASDAQ Global markets, Ebang is now valued at approximately $ 685 million, which is far lower than the unicorn status it was seeking in its previous attempt to list shares on the Hong Kong Stock Market in 2018.
At the time, the company made the IPO filing, seeking to raise $ 1 billion from the public. The IPO never materialized and has since then suffered a fate similar to that of most other IPOs from competitors Bitmain and Canaan.
Ebang's shares (listing symbol: EBON), since their listing, they have had a downward trend. In the first 15 minutes of trading, they fell from the trading price to just $ 4.12 and continued to drop further to daily lows of $ 3.87, losing 26% of their hourly value. Since then, the price has recovered to levels below $ 5, according to data from the NASDAQ exchange. This could be precipitated by falling cryptocurrency prices, especially bitcoin, which in the past 48 hours has lost around $ 400 of spot market prices.
Ebang International Holdings is a company registered in the Cayman Islands with its manufacturing operations carried out from China. Coincidentally, its competitor Canaan Holdings is also a Cayman-registered company. For its IPO, Ebang had three subscribers, namely Hong Kong-based AMTD Global Markets Limited and Loop Capital Markets LLC, which the company listed in its initial April prospectus to the SEC.
A third company Prime Number Capital LLC was included on the subscriber list in his revised June application. All three subscribers have the option to purchase an additional 2,889,650 Class A common shares within the next 30 days at the stated price. If companies choose to buy the shares, this will bring the total floating number of common shares on the market to 22,153,987.
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