Huobi is planning for a reverse IPO attempt according to documents posted by the Hong Kong Stock Exchange (HKEX).
Pantronics Holdings Limited, acquired by Huobi last August disclosed in a filing that it will change its name to “Huobi Technology Holdings Limited”.
<img width="680" height="374" src="https://www.cryptonewspoint.com/wp-content/uploads/2019/09/EEROqUCWwAArydn.jpeg" alt="" class="wp-image-1490 lazyload" />
Huobi is the majority shareholder of Pantronics Holdings Limited with over 73 percent stake at the company. 221 million shares of Pantronics Holdings Limited were transferred to the Huobi Group upon the acquisition.
According to the document:
“While the Group continues to develop the relatively stable manufacturing businesses, the Group is looking into further expansion to the fast growing technology related businesses,”
The acquisition of Pantronics Holdings Limited will provide Huobi the opportunity to go public in Hong Kong.
“Emerging technologies, such as mobile internet, AI, big data, and especially blockchain technology are radically transforming traditional business models. The knowledge, experiences, and management skills that have allowed Leon to build one of the most successful digital asset companies in the world will be invaluable to the Pantronics team.” Chris Lee, Pantronics’ current executive director, Pantronics holdings Limited
Hong Kong exchange stricter regulation
However, the Hong Kong Stock Exchange is planning for stricter regulation on “backdoor IPOs” from October 1.
“The stock exchange said it would make changes to its current regulations, making such transactions more difficult for those that acquire another publicly listed company in different industries based in Hong Kong.”
Obstructs in Hong Kong are making crypto companies to go public in other jurisdictions.
Crypto mining company, Bitmain’s IPO was allowed to go expired due to second thoughts by HKEX. It has plans to list its IPO in the US.
Another Bitcoin mining company, Canaan Creative files for IPO in the US confidentially after a delayed filing attempt in HKEX.