Canaan Inc., a maker of Bitcoin mining machines, fell in its trading debut after raising $90 million in a U.S. public offering.
The Hangzhou, China-based company’s American depository shares fell 3.5% to $8.68 at 11:47 a.m. in New York trading. The shares had opened at $12.60 — 40% above their offer price — before falling sharply. Trading was halted for five minutes due to volatility.
Canaan sold 10 million shares for $9 apiece on Wednesday, according to a statement.
The firm lost its lead underwriter, Credit Suisse Group AG, before the deal was launched, according to its filings. The shares had been marketed for $9 to $11, according to filings with the U.S. Securities and Exchange Commission. Canaan had earlier listed the size of IPO as much as $400 million.
Twenty-nine companies based in China or Hong Kong raised $3.34 billion in U.S. IPOs this year, about half the volume from the same period in 2018, according to data compiled by Bloomberg. This year’s listings have fallen 6.6% on a weighted-average basis. That compares with a 7% overall increase for U.S. listings this year and a 14% increase in the S&P/BNY Mellon China ADR Index.
Canaan filed to list in Hong Kong before the city’s exchange indicated that it was “premature” for crypto-related businesses to go public in the Asian financial hub. While Bitcoin has more than doubled this year to more than $8,000 on Wednesday, its value is less than half of its all-time high in December 2017.
The offering was led by Citigroup Inc., China Renaissance Holdings Ltd. and CMB International Capital Ltd. The shares are expected to begin trading Thursday on the Nasdaq Global Market under the symbol CAN.