As per the document issued by the Hong Kong national Stock Exchange (HKEX), the significant cryptocurrency exchange Huobi is pursuing the plan of Reverse IPO.
As per the posting of September 10, HKEX registered electronics firm Pantronics Holdings Limited taken over by Huobi will be altering its name to Huobi Technology Holdings Limited. At the period of the takeover, about 221 million shares of Pantronics were transferred to Huobi. The digital exchange giant became the major shareholder of the company with 73% stake. The deal was sealed at $77 million among the two companies.
The aforementioned deal between the firms will help Huobi to go civic in Hong Kong and provide them with a chance for a reverse takeover. The exchange is waiting for the approval of HKEX to make a public announcement of the acquisition.
However, the reverse IPO plan of Huobi may face strict regulations from HKEX. The stock exchange has informed that they will be revising the regulatory strategies by October 1st. It is anticipated that after the regulatory update, it will be difficult for the companies to acquire any Hong Kong-based publicly listed company from a different industry.
As per the reports, if the deal gets approved, it will give an opportunity to Huobi to take over publicly listed company. And enter the secondary financial market. The process is otherwise known as a reverse IPO.
HT token has seen a steep rise in its price after the news of the acquisition. Presently HT token is priced at $2.32. It is predicted that its value may rise if a reverse IPO happens.
Pantronics began functioning in 1990, but it went in civic in 2016. It is an electronics engineering company and is not related to cryptocurrencies.
HKEX has always served as a hotbed for the cryptocurrency-related firm. As per the reports, many significant cryptocurrencies firm including Ebang and Canaan Creative, are applying for IPOs in the stock exchange.
However, in Hong Kong, the Chinese mining firm, Bitmain botched in its IPO as it was allowed to perish largely because of hesitancy from HKEX. As per the information, the company is trying to enter the US market. Their IPO is believed to be the highest of all in history. It is calculated that it was as high as $18 million and had a market capitalization of $50 million.