Ebang, a Chinese Bitcoin ASIC chip manufacturer, is looking to go public with new shares. According to a report on Friday by the US SEC, the company has filed with the regulator for a $100 million IPO.
IPO (Initial Public Offering) is another medium through which companies reach out to the public with their stock in a bid to raise capital. Ebang IPO intended to raise capital for the chipmaker.
According to the report, the company plans to issue Class A ordinary shares, which will be traded at the price of $0.00013 for a share. Ebang IPO shares go with ‘EBON’ ticker and will be listed on either the New York Stock Exchange or NASDAQ.
The latest Ebang IPO is coming after its Hong Kong-planned IPO was deemed unsuccessful nearly two years ago. The company’s plan for $1 billion in IPO was halted towards the end of 2018. It filed for the offering in June that same year.
Market downturn
As of last year, 82 percent of the company’s revenues were garnered from the sales of its ASIC chips, including fabless integrated circuits. Its total revenue for that year clocked $109 million, which is less than half of 2018 revenue.
Ebang reportedly saw $319 million in revenue in 2018. The drop noted last year could be related to the decreasing demand for cryptocurrency mining components, due to the falling price of a cryptocurrency.
The company explained that the price and market demand for Bitcoin miner machines correlate with the profit the devices generate, which is mostly influenced by the price of Bitcoin. If the price of Bitcoin rises, the demand for the mining machines increases accordingly.
In this case, the company said it would be able to sell their products at a higher price. During the downturn in 2019, Ebang’s sales fell to 289,953 at an average rate of $304.
