Chinese chip designer reportedly filed for $50M Nasdaq IPO
Chinese language mining chip designer Nano Labs has utilized for an preliminary public providing (IPO) in america to boost $50 million on Nasdaq amid sluggish market circumstances.
According to info obtained by the Renaissance Capital IPO monitoring software, the Huangzhou-based crypto mining chip maker has filed with the regulator, the U.S. Securities and Change Fee (SEC), for its upcoming public providing on Nasdaq, the world’s second-larges inventory alternate.
The applying for American depository shares is going on amid a slew of regulatory difficulties in China and america, inflicting a scarcity of Chinese language issuers’ abroad fundraising. Solely two IPOs befell in 2022 in New York, elevating $49.5 million, in comparison with 28 IPOs, which raised $5.8 billion final yr.
Nano Labs, nonetheless, is urgent forward with its Nasdaq providing though it has but to supply a viable product. The agency plans to rework right into a metaverse enterprise, offering computing energy for gaming and leisure.
A metaverse is a brand new on-line surroundings being developed on the blockchain. Customers might create avatars and personal digital property in these digital realms, generally known as “next-generation web” or Web3 functions.
The 2 fundamental shareholders of Nano Labs are co-founders Kong and Solar Qifeng, with 32.8% and 22.3% stakes, respectively. Kong was beforehand the co-chairman and a director at rival Canaan, which turned the primary cryptocurrency-mining rig maker to checklist within the U.S. in November 2019. In August 2020, he departed Canaan amid a company energy battle, in line with reviews from China then.
Nano Labs’ merchandise are used to mine cryptocurrencies reminiscent of Bitcoin (BTC), Ether (ETH) and Filecoin (FIL). In 2020, the corporate’s earnings had been derived solely from China-based shoppers. To broaden gross sales abroad, it established a subsidiary in Singapore final yr.
Associated: Celsius Community’s crypto mining subsidiary SEC submitting suggests plans for IPO
After Beijing cracked down on crypto actions in Might 2021, China, which was beforehand the world’s greatest cryptocurrency mining location, witnessed some actions being pushed underground. In July final yr, the hash price, a metric of the community’s computing energy for validating transactions and creating new digital property, briefly went to zero.
Even when the IPO is successful, Nano Labs faces the hazard of being delisted. If a U.S. audit regulator fails to look at Chinese language accounts for 3 years, mainland Chinese language companies could also be delisted from American markets by 2023. Nano Labs claimed it might face this downside on account of auditing work finished by its accounting agency’s workplaces in China.