Morgan Stanley and Deutsche Bank to sponsor Canaan IPO in HK
According to Caixin, Canaan Creative have submitted listing application in HKEX, planning to raise $1 billion. Meanwhile, Zhejiang Yibang, aka ebit, also plans to list in Hong Kong. Yibang has been removed from NEEQ market in china on March 23 2018. The company plans to get listed in oversea exchange. Morgan Stanley and Deutsche Bank are the joint sponsors of the Canaan IPO.
In 2016, Canaan planned to get listed in Shenzhen Stock Exchange by major reorganization of assets. However, Shenzhen Exchange issued thee inquiry letter to the event, which led to the nullification of the listing attempt. In August 2017, the company submitted a listing application on the New Third Board, or NEEQ. But the company withdrew the listing application in 2018.
According to application material that Canaan submitted, the company gained about 254 million yuan from January to April 2017, achieving a net profit of 32.6937 million yuan. In 2016, the company’s revenue was 316 million yuan, 4.71 times increase on a year-on-year basis, and net profit also increased significantly by 22.65 times to 58.0661 million yuan. Income from miner sales accounted for 99.57% of the total revenue, of which 97.13% came from domestic sales.
On April 24, Jiang Yang, Vice Chairman of the China Securities Regulatory Commission, had expressed his wish for the company to be listed in domestic exchange.
In the A-round funding that was closed in 2016, Canaan was valued at RMB 3.3 billion.
Zhang Nangeng, CEO and co-founder of Canaan Creative, said that the company plans to increase its overseas sales this year and expand markets in South Korea, the United States, and Europe. It will also launch an AI chip KPU for non-mining applications this year, which could be utilized in smart homes, assisted driving and more. He said that non-mining business is expected to contribute income to the company from 2018 on. The company hopes to lift relevant revenue to 50% within three years.