The Block reported that the firm raised a total of $90 million in its initial public offering (IPO) by offering 10 million American depositary shares (ADS). The first hour of trading saw Canaan’s shares trading as high as $11.23, before plummeting to below $9 within 30 minutes.
As reported previously, the firm was seeking to raise $100 million in the IPO, having put a placeholder amount of $400 million in late October. According to the details on Crunchbase, Canaan’s valuation at IPO is $1.4 billion.
According to an online post by BlockTrain, Canaan’s offering was managed by Citigroup Global Markets Inc., China Renaissance Securities (Hong Kong) Ltd., and CMB International Capital Ltd. With its IPO, the firm intends to expand the development of AI-applications for ASICs.
Founded in 2013, Canaan is the manufacturer of high-performance integrated circuits and is the company behind the Avalon bitcoin mining machines. The company previously sought listings in China and Hong Kong in August 2017 and May 2018, both of which were subsequently suspended.
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