Altcoin News: Huobi May Try to Conduct a Reverse IPO in Hong Kong
September 12, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
The Huobi cryptocurrency exchange may plan a reverse initial public offering (IPO), CoinDesk writes with reference to a document published by the Hong Kong Stock Exchange (HKEX).
According to a notice dated September 10, Hong Kong electronics maker Pantronics Holdings Limited, which was acquired by Huobi last August, will be renamed Huobi Technology Holdings Limited.
The company transferred more than 221 million ordinary shares in favor of the Huobi Group at the acquisition stage, according to disclosed documents. The $77 million deal allowed the cryptocurrency exchange to become Pantronics’ largest shareholder with a share of more than 73%. Even then, it was assumed that the ultimate goal of the transaction was to provide Huobi with an opportunity to conduct an IPO in Hong Kong through a reverse takeover, CoinDesk claims.
Huobi’s plans, however, may be hindered by tightening HKEX rules regarding reverse IPOs from October 1. The stock exchange announced upcoming changes in the conditions for such campaigns, which is why putting one company on the IPO by absorbing another company operating in a different industry will become a more complicated procedure.
Earlier, Bitmain and Canaan Creative mining companies tried to conduct an IPO in Hong Kong.
Author: Marko Vidrih
