The Hong Kong stock exchange (HKEX) is in no hurry to approve applications for initial public offering (IPO) from leading Chinese cryptomery due to the unfavorable situation on the market, writes CoinDesk.
In the year of application for the IPO was filed by the producers of mining equipment Canaan Creative, Ebang and Bitmain.
“The exchange is reluctant to approve applications for IPOs of mining companies due to the instability of the industry. There is a real risk that in a year or two they will cease to exist. HKEX wants to be the first exchange in the world, which will approve the request of the company, and then she will die”, — told CoinDesk familiar with the situation source.
The application for an IPO must approve HKEX and the Commission on securities and futures (SFC). After they are accepted for consideration at the hearings on the listing, which, in particular, is determined by the nominal share price and volume of their offer. If the applicant fails to appear at the hearing after six months of treatment, the application loses its force. Within three months the initiator of an IPO can restore removed from the consideration of the application.
As previously reported, in November, the Canaan Creative application lapsed. At Ebang there are still two weeks to HKEX does not freeze the application, and Bitmain three months.
“I think that now none of them will be able to get to the stage of hearings. If one of them [HKEX and the SFC] will not agree to meet, then the meeting, you do not get”, — commented on the publication of the anonymous source.
HKEX also emphasizes on the financial statements and cryptocurrency savings companies. According to the source CoinDesk, the exchange carefully ensures that the initiators of the IPO regularly disclose information about losses.
Note, according to Bitcoinist, losses mining company Bitmain in the third quarter of 2018 estimated $740 million
Meanwhile, a Twitter account under the name BTCKING555 published information that cryptosporidia Bitmain decreased to $80 million.
The company’s filed cryto holdings at $800 mln in the prospectus are now less than $80 mln, with predominant weight in BCH (which continues spiraling d) @HKEXGroup 😱
— BTCKING555 (@btcking555) 17 Dec 2018
However, the CoinDesk sources also added that, perhaps, HKEX simply delaying the approval of applications because of the uncertainty.
We will remind, in July, Bitmain, Canaan Creative and Ebang went to the Chinese list of “unicorns”.
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