After the June statements made by CEO Jihan WU about possible plans to hold an IPO and raise about $18 bln, at the end of September the mining leader finally submitted an official application to the Hong Kong Stock Exchange, despite the fact that large corporations one after another denied rumours about their participation in financing Bitmain. It seems that the mining company has a serious need for additional funds. Thus, the company began to publicly disclose financial accounting little by little. We have analysed the data that has been presented so far. Although Bitmain is trying to demonstrate that the company is doing well, and they have decided to do fundraising to develop a new business direction - artificial intelligence, with careful consideration it becomes clear that IPO investors can become owners of high-risk assets. The reasons behind this can be a large content of illiquid resources, a drop in demand on the mining market, high dependence on the company's single ASIC supplier, uncertainty in the regulation of the cryptocurrency industry, including the taxation issue. All these problems undoubtedly concern Bitmain itself and therefore the corporation is striving to attract investments as soon as possible, while still having a strong name, its brand.
Toon by Maxim Smagin.
On the 4th of September the biggest investment company in Asia Temasek Holdings denied rumours about its involvement in the pre-IPO of the mining giant Bitmain. Earlier, the Japanese company SoftBank and the Chinese IT-corporation Tencent made the same statements. Nevertheless, Bitmain does not give up on the IPO idea and hopes to raise up to $18 bln by the end of the year. What are the reasons for the investors being cautious about financing the leader of the mining sector (read more)
Previously, we wrote about the possible reasons that pushed the mining giant to consider holding an initial public offering (IPO). On September 26, the company finally submitted an official application to the Hong Kong Stock Exchange (HKEX). The underwriters will be Hong Kong Securities Limited, Maples and Calder (Hong Kong), KPMG and Frost&Sullivan.
In June the CEO at Bitmain Jihan WU shared his plans to attract funds through an IPO. However, then a number of large corporations, such as SoftBank, Temasek and Tencent, refuted participation in the pre-IPO. Despite the discouraging forecasts about the poor outcome of the Bitmain venture, the company seems to have serious intentions as the draft of the application, where the details can be still edited, is already under the HKEX consideration. Although the final evaluation of the company, the volume of shares to be offered and the date of the offer are still disguised, Bitmain shared the consolidated financial data for 2015, 2016, 2017 and separately for the first halves of 2017 and 2018, which we will compare and thereafter analyze the financial condition of the company conducting the IPO (read more)