Bitmain Technologies Files IPO with the Stock Exchange of Hong Kong (SEHK)

Omar Faridi
  • Bitmain Technologies has filed an application for its IPO with the Stock Exchange of Hong Kong (SEHK).
  • Bitmain has released a detailed prospectus which shares the firm's profit and loss statements from FY 2016, 2017, and first half of 2018.

Beijing-based Bitmain Technologies has reportedly filed an application to launch its highly-anticipated Initial Public Offering (IPO) on the Stock Exchange of Hong Kong Limited (SEHK) - one of the largest in Asia, with a market capitalization of approximately $4 trillion.

Released this week, Bitmain’s IPO prospectus does not specify the number of shares it will offer nor include a schedule (or timeline) for the public offer. However, the prospectus does reveal the mining hardware manufacturer’s profit and revenue for financial year (FY) 2016, 2017, and first half of 2018.

Bitmain's Profit & Revenue Statements

The financial figures are as follows:

Revenue:

  • $2,845,467,000 (as of June 30, 2018)
  • $2,517,719,000 (in FY 2017)
  • $277,612,000 (in FY 2016)

Profit:

  • $907,792,000 (almost $1 billion Q1/Q2 2018)
  • $1,212,750,000 (in FY 2017)
  • $151,351,000 (in FY 2016)

Commenting on its “strengths”, Bitmain noted in its prospectus (in which much of the information has been redacted) that there are six factors which “differentiate” the leading crypto mining equipment manufacturer from its competitors. They include:

  • “Leader in the global ASIC industry;”
  • “Pioneer in the thriving blockchain ecosystem;”
  • “Strong contender in the AI chip industry;”
  • “Outstanding research and development capabilities;”
  • “Close partnership with leading supply chain partners;” and
  • “Visionary management team believing in AI and blockchain technology.”

In line with these core strength areas, Bitmain Technologies plans to further invest in its ongoing research and development (R&D) efforts, “advance [its] presence” in the crypto industry, and focus on the “commercial application” of AI technologies.

IPO Underwriters

Underwriting Bitmain’s IPO are Hong Kong Securities Limited, Commerce and Finance Law Offices, KPMG, China International Capital Corporation, Hong Kong-based Maples and Calder, and Frost & Sullivan.

The prospectus clarifies: 

As of the Latest Practicable Date, none of the experts named above has any shareholding in any member of our Group or the right (whether legally enfroceable[sic] or not) to subscribe for, or to nominate persons to subscribe for securities ... in any member of our Group.

Bitmain IPO Prospectus

Information pertaining to Bitmain’s investments was included in the prospectus. Notably, Bitmain Technologies recently acquired a 3 percent stake in Opera through a $50 million investment in Opera Limited.