Some Chinese companies might be overlooked of the world’s second-largest stock market as a results of proposed changes — and crypto is not any exception.
Nasdaq, the world’s second-largest stock market , goes to introduce new restrictions on initial public offerings, or IPOs, to stop smaller Chinese companies from getting listed, a recent Reuters report citing anonymous sources suggests.
Chinese IPO seekers tend to lack accounting transparency and have “close ties to powerful insiders,” Reuters’ sources claim, which is why the new rules will reportedly began a minimum value on the dimensions of IPOs for the primary time on Nasdaq.
Specifically, the exchange might require companies “from some countries, including China,” to boost a minimum of $25 million in their offering or, alternatively, a minimum of 1 / 4 of their post-listing market capitalisation . Chinese companies won’t be officially cited because the reason for the adjusted requirements, the sources clarified.
While a complete of 155 Chinese firms have gone public via Nasdaq since 2000, 40 of these grossed IPOs come short of $25 million, the info cited by Reutuers shows.
All crypto-related Chinese companies listed on Nasdaq and other U.S. stock exchanges (such as Canaan Creative and OneConnect) have surpassed that number. While the rumored and existing applicants — Bitmain and Ebang — hope to boost over a minimum of $100 million, the projected changes are still expected to introduce more scrutiny for all Chinese applicants.
Specifically, the auditing firms of yet-be-listed Chinese companies will need to make sure that their international franchises suits “global standards,” while Nasdaq also will examine the auditing of small U.S. firms that audit the accounts of Chinese IPO hopefuls, consistent with the sources cited by Reuters.
Chinese crypto IPOs
In November 2019, Bitcoin (BTC) mining giant Canaan Creative became the primary Chinese crypto firm to travel public within the us after failing to secure an IPO in Hong Kong . After losing its biggest bank, Credit Suisse, a couple of days before the listing, Canaan raised $90 million, although it had originally intended to realize $400 million.
Softbank-backed Chinese blockchain firm OneConnect completed its IPO in December 2019, raising $347.2 million during a ny stock market offering.
Around the same time, Bitmain, the Beijing-based cryptocurrency hardware producer, quietly filed a Deutsche Bank-backed application for an IPO with the us Securities and Exchange Commission. While it’s unclear what proportion Bitmain is looking to boost , the mining giant hoped to secure the maximum amount as $3 billion in mid-2018.
Finally, last month, major mining chip manufacturer Ebang filed for a $100 million IPO within the U.S., revealing that it plans to list on either Nasdaq Global Market or the NYSE under the ticker EBON.