Chinese cryptocurrency mining company, Ebang International Holdings Inc., has refiled documents for a public share sale with the Hong Kong stock exchange. This is after its first submission failed to proceed. Money raised from the initial public offering (IPO) will go towards the development of new mining hardware and non-crypto Blockchain, among a host of other new things.

Development funds to be raised

Ebang did not disclose how many shares the company intended to sell or how much each share will cost. It’s also unclear how much money Ebang intends to raise. Reports at the time of the initial application in June pointed to a figure of around $1 billion. The first filing has since expired and hence the need to reapply anew. The funds that will be raised will go towards the development of new mining equipment and Blockchain advancement

Ebang – based in Zhejiang province in eastern China – manufactures and sells cryptocurrency mining equipment and telecommunications network devices under the Ebit brand. According to the latest listing papers, Ebang posted 2.14 billion Yuan ($310 million) of revenue in the six months to June 2018. Net profit increased 12- fold to 931.72 million Yuan ($135 million) but profits went downhill rapidly during the third quarter of 2018, as global cryptocurrency markets plummeted. The third quarter of 2018 saw almost all crypto-exchange platforms record a plunge in market price.

The company owns 11 percent of the global market for Bitcoin mining chips, according to the iResearch report. During the second quarter, it experienced significant decreases in revenue and profit compared to the previous year which ended in June.

One of the requirements for companies intending to list on the exchange is that they provide financial information for a period, not more than six months to the date from when the application was made. Regulators in Hong Kong, including the stock exchange itself, have raised concerns about the business model and future prospects of crypto companies.

Ebang is a major player in the Chinese cryptocurrency sector. All eyes will be following the process closely to see whether the major player in the Chinese digital currency sector will be listed.

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