Canaan prices IPO shares between $9 and $11 to raise $100 million

On Wednesday, Canaan, the China-based cryptocurrency mining manufacturer, announced the terms of its upcoming November 20th IPO. According to Renaissance Capital, Canaan plans to raise $100 million by offering 10 million shares (ADSs) at a price range of $9 - $11. At the $10 per share midpoint of the proposed range, Canaan’s fully diluted market value would be $1.6 billion. Canaan originally filed for a $400 million offering in October and had planned to raise as much as $1.5 billion in 2018.

Why it matters:

• If successful, Canaan’s $1.6 billion fully diluted market value at the $10 per share midpoint would make it the first cryptocurrency unicorn listed on a U.S. stock exchange.
• The offering amount is substantially lower than what Canaan had originally intended to raise, signaling more lukewarm demand from institutional investors than expected. Notably, Credit Suisse, is no longer the lead underwriter on the offering after dropping out. That role is now being fulfilled by Citigroup.