IPO Rumors Surround Huobi’s $77 Million Acquisition of Public Firm
As cryptocurrencies progress and the community develops, it is difficult for projects to grab the attention of global audiences. Sometimes they fail before ever garnering recognition, but others manage to rise to the top.
Huobi, a world-leader in digital currency exchanges, has earned a reputation for efficient and innovative fintech solutions dominating trade all over the globe. The platform was originally initiated in Singapore, but aims to spread to markets worldwide.
As they began to open offices in about 130 nations across the map, Huobi experimented with different types of ownership structures, like affiliated corporations such as HBUS or HuobiAU, who are not formally under Huobi’s exclusive brand, but are supervised by the exchange directly.
Currently, Huobi aims to acquire a public agency in Hong Kong, which would put it in the position for an initial public offering. The $77M deal will bring about opportunities for the company to open itself to the public.
Last week, Pantronics Holdings submitted shareholding disclosures on the HKSE detailing their transfer of around 221 million shares to Huobi Groups’ head Li Lin via various exchange branches.
Pantronics manufacturs electronic tech, and is based in the British Virgin Islands. They went public two years prior, and their market capitalization currently stands at $900 million.
Public information regarding the acquisition shows each share stands at a value of HK $2.72, or $0.35 USD. The agreement details that Li Lin will become the shareholder with majority shares in Pantronics Holdings, and in turn will own about 73% of the corporation the company.
Since the acquisition was reported, PH stopped trading shares on the HKSE. Huobi has yet to make a statement regarding the buy-out, or any intentions to purchase a stock package. It is being reported that they might be waiting for the HKSE to give their approval in light of the new ownership and weight of the move.
Nonetheless, if the agreement continues without any major issues, Huobi will be able to acquire PH and join the secondary market in what is being called a reverse takeover. Despite rumors surrounding the possibility of the purchase, the crypto market was alight with theories and opinions. In addition, upon initial reports in the media, the Huobi Token saw a price increase by 8%.