Crypto Exchange Huobi Plans to Reverse IPO in Hong Kong
Cryptocurrency exchange Huobi has reportedly been planning a reverse initial public offering (IPO) according to a document revealed by the Hong Kong Stock Exchange (HKEX).
In a notice published on September 10, the Hong Kong-listed electronics manufacturer Pantronics Holdings Limited, which was a company that was acquired by Huobi in 2018, uncovered that it would be renamed to Huobi Technology Holdings Limited.
Patronics Document. Source: HKEX
According to the disclosed documents, the company transferred more than 221 million ordinary shares in favor of the Huobi Group at the acquisition stage. Resulting in a $77 million deal, Huobi became Pantronic’s largest shareholder with more than a 73 percent stake. It has been assumed that the ultimate goal of the deal was to allow Huobi to conduct a reverse IPO in Hong Kong.
Stricter regulations on reverse IPOs from the HKEX planned ahead for October 1 may affect the company’s move. HKEX stated that it would change current regulations, meaning it would be harder for those that acquire a publicly listed company in different industries based in Hong Kong.
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