Canaan Inc. (Nasdaq: CAN) celebrated its debut in Times Square, raising $90 million in its initial public offering.
“Because we priced at the lower end, it mainly leaves the money on the table for the investors,” an underwriter familiar with the company told CapitalWatch before Canaan rang the bell at the Nasdaq Global Select Market.
She added “So we hope post market performance will be good and investors think the evaluation is very high,”
Before the confetti surrounded the Canaan team, Nangeng Zhang, the chairman and chief executive officer of the company highlighted the journey it has taken to become publicly traded.
(Nangeng Zhang, the CEO of Canaan delivers a speech before becoming publicy traded on Nasdaq)
“Our success is the outcome of our journey we have taken together, but it’s also the joy of overcoming scientific research and the joy of harvesting custom orders together,” Zhang said in a speech at Nasdaq’s bell ceremony room .
He described the company’s goal and stock code “Our mission and vision are to make supercomputing successful to everyone. Our stock code is CAN, we believe we can do it. Yes we can!
Within the first hours of trading, Canaan soared past its offering price to $11.23 per American depositary share. However, by midday, Canaan’s shares tanked nearly 7% from its offering price to $8.40 per ADS.
Trade war tensions have picked back up this week, as United States President Donald Trump threated to implement higher tariffs if China doesn’t make a deal, CNBC reported on Tuesday.
Launched in 2013, Canaan operates as the second-largest developer and manufacturer of bitcoin mining machines globally, according to data provided by market analytics firm Frost & Sullivan. On its website, the company also calls itself the world's leading supplier of AI & blockchain chips and system solutions.
Canaan also provides supercomputing solutions globally through its high-performance ASICs, application-specific integrated circuits.
“I think everyone is talking about the future of blockchain. So I really think that the hardware infrastructure will be supported, the most important will be the supercomputing power,” the underwriter told CapitalWatch.
She continued on the future of blockchain’s, “Basically you need to provide the supercomputing power in a very cost and power efficient way. So I think what the company has done today will support them to be a successful player in the future.”
Underwriters on Canaan’s IPO may purchase an additional 1.5 million ADSs, according to the company's latest filing with the U.S. Securities and Exchange Commission. Each ADS represents 15 ordinary shares.
Citigroup Global Markets Inc., China Renaissance Securities (Hong Kong) Ltd. and CMB International Capital Ltd. are acting as joint bookrunners of this offering.