IPO news

A type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors.

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Hong Kong: Cryptocurrency Exchange Huobi Looks to Go Public with Reverse IPO

According to a report by Crowdfund Insider published on September 12, 2019, major cryptocurrency exchange platform Huobi is set to pursue reverse initial public offering (IPO) in Hong Kong. Huobi Looking for a Backdoor Entry Crypto business ventures have typically had it tough when it comes to going public on a regulated stock exchange. TheRead MoreRead More. The post by Aisshwarya Tiwari appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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Huobi May Attempt a Reverse IPO Per Letter Posted with Hong Kong Stock Exchange

Huobi, one of the largest crypto exchanges in Asia, seems to be moving towards a reverse Initial Public Offering (IPO), some documents posted on the Hong Kong Stock Exchange (HKEX) suggest. According to the latest filing, the company will use a company that was recently purchased to make the move. Pantronics Holdings Limited was acquired […]
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SmileDirectClub Shares Go Down 28% below Their IPO Price

Coinspeaker SmileDirectClub Shares Go Down 28% below Their IPO PriceOnline dentistry company SmileDirectClub shares fell by huge 28% yesterday and it was pretty much the worst market debut for one unicorn start-up so far this year.The company’s shares closed at $16.67 after they have opened at $20.55. SmileDirectClub classifies as the fifth-worst debut of the 109 companies that went public this year. Just for comparison, shares of Uber, another unicorn or start-up valued at $1 billion or more went down by 7.6% on that stock’s first day on the public markets.The company priced its initial public offering at $23 per share on Wednesday this week and it was pretty much more than the expected range of $19 to $22. SmileDirectClub sold 58.5 million shares and raised $1.3 billion and that valued this online dentistry company at $8.9 billion. Yesterday’s move, however, values the company at around $6.4 billion.SmileDirectClub CFO Kyle Wailes said they are focused on long term shareholder value – the next 12, 24, 36 months and beyond.He said:“Today’s IPO allows us to reinvest in innovation in product, process, international growth and customer experience. We are just getting started but our commitment to our mission, our 5,500+ team members, our customers and now our shareholders is stronger than ever.”The stock is trading on the Nasdaq under the ticker symbol SDC.SmileDirectClub co-founder Alex Fenkell said:“You know, we’re here to build long-term value with the stock. How the stock priced today I don’t think is going to dictate what we’re doing here.”The start-up, is founded back in 2014 and it distributes teeth aligners directly to consumers on their website and in their “SmileShops” starts at $1,895 for a two-year plan.The company’s founders Fenkell and Jordan Katzman are aiming to distort the orthodontics industry with some kind of cheaper teeth-straightening treatments, benefit, and not-so-cheap TV and social media advertisements.According to their prospectus filed last month, last year was pretty successful for the company that reported $423.2 million in sales and huge 190% increase from the $146 million it reported in 2017.SmileDirectClub called out those issues in its S-1 as potential risk factors by saying:“A number of dental and orthodontic professionals believe that clear aligners are appropriate for only a limited percentage of their patients. National and state dental associations have issued statements discouraging use of orthodontics using a teledentistry platform. Increased market acceptance of our remote clear aligner treatment may depend, in part, upon the recommendations of dental and orthodontic professionals and associations, as well as other factors including effectiveness, safety, ease of use, reliability, aesthetics, and price compared to competing products.”Also, as the S-1 says, a national dental association recently filed a petition with the U.S. Food and Drug Administration claiming that SmileDirectClub’s manufacturing violates “prescription only” requirements. When there is no regulations or laws that had been passed and that would affect SmileDirectClub to date, there is a possibility that it could really impact the company’s core business.Nevertheless, the company also posted a net loss of $74.8 million last year that represents more than double the net loss of $32.78 million in 2017.Be it as it may, getting new customers is pretty expensive. SmileDirectClub spent $289.3 million just on marketing and general expenses last year.Jordan Katzman’s father, David Katzman, funded SmileDirectClub’s seed round through his venture fund, Camelot Venture Group, and is the company’s CEO. Camelot also invests in direct-to-consumer brands, such are 1-800-Contacts and Quicken Loans.On the other hand, David Katzman’s brother, Steven Katzman, works as a chief operating officer of the company. The whole Katzman family, combined, will employ more than 65% of the voting power between the three men after the offering. CEO David Katzman will have nearly 30% of the vote with 87 million Class B shares, which control 10 votes for every 1 vote offered to a Class A share.According to its initial prospectus filing, SmileDirectClub operates more than 300 locations. They also signed partnerships with Walgreens and CVS to open “SmileShops” inside their drugstores.SmileDirectClub Shares Go Down 28% below Their IPO Price

Huobi Reportedly Plans a Backdoor IPO on the Hong Kong Stock Exchange

Coinspeaker Huobi Reportedly Plans a Backdoor IPO on the Hong Kong Stock ExchangeOver the last one month, cryptocurrency exchange Huobi has been flexing its muscles to launch its IPO. The latest filing documents suggest that Hubo is planning for a backdoor entry to the Hong Kong Stock Exchange (HKEX).The filing dated September 10, mentions Hong Kong-based electronics manufacturer Patronics Holdings Ltd. Huobi acquired this company last August and has renamed it to Huobi Technology Holdings Ltd. Upon its acquisition, Patronics transferred over 220 million shares to the Huobi Group.In all, as per the shareholding disclosures, the deal was valued at $77 million wherein Huobi got the majority stake in Patronics. Today, Huobi holds a massive 73 percent stake in Patronics. This reverse takeover provided a way and opportunity to Huobi to go public on the Hong Kong Stock Exchange (HKEX).However, starting next month of October, the HKEX is planning to put stricter regulations for backdoor IPO entries and things might not go ahead for Huobi as expected. In the light of such acquisitions, the HKEX is planning to make changes to the current regulations. Thus, it will make it difficult for companies just to get a majority stake in the public listed company and enter the markets.After China banned crypto transactions in 2017, Hong Kong has become the hub in Central Asia for crypto companies to establish their base. Huobi is not the first crypto company attempting to go public on the Hong Kong Stock Exchange. Bitmain, the manufacturer of crypto mining devices also planned a similar IPO but faced some regulatory hurdles and decided to call-off the project.To expand its global footprint, Huobi has been flexing its muscles and making some important acquisitions. Earlier this month, Huobi acquired a controlling stake in a licensed Japanese Crypto exchange BitTrade. BitTrade is officially registered with the Japanese regulator – Financial Services Agency – and is legally carrying out its operations in the country.During the acquisition, Huobi CFO Chris Lee said:“Leveraging on Bit Trade’s leadership team and its Japanese government-approved license, this is just the beginning as we look to grow Bit Trade into the most dominant player in the Japanese cryptocurrency market.”Once the new regulations by HKEX kick-in next month, it remains to be seen how Huobi manages to sail through its plans ahead.Huobi Reportedly Plans a Backdoor IPO on the Hong Kong Stock Exchange

Peloton Plots IPO With the Stock That Could Be Worth $8 Billion

Coinspeaker Peloton Plots IPO With the Stock That Could Be Worth $8 BillionMaker of stationary bikes Peloton finally revealed some more info of the company’s plan to go public. The fitness startup famous for their on-demand workout programs on exercise bikes, announced they are planning to raise $1.33 billion in an initial public offering (IPO).Peloton filed to become a public company in August and now, according to a Securities and Exchange Commission filing, they plan to offer 46 million shares at a price range between $26 and $29 per share. If the company succeeds in selling their shares at the high end, they will push their market value to $8.23 billion. Peloton has applied to list the Class A shares on the Nasdaq under the symbol PTON.The company was founded back in 2012 and has more than 1.4 million members who can access live and on-demand classes from their home. They have been known of succession to raise $550 million in venture capital funding last year at a valuation of only $4.15 billion. The company has in total attracted $994 million in venture capital investment.Their S-1 filing lists CP Interactive Fitness (5.4% pre-IPO stake), an entity connected to the private equity firm Catterton, TCV (6.7%), Tiger Global (19.8%), True Ventures (12%) and Fidelity Investments (6.8%) as principal stakeholders, or investors with at least a 5% stake in the company. The underwriters to the IPO are pretty big names as well. Among others, there are Goldman Sachs, JPMorgan, Merrill Lynch, and Barclays.However, last year they had a pretty rough time during which, according to their files, they managed to lose $196 million on sales of $915 million. On the other hand, Peloton reported huge $915 million in total revenue for the year ending June 30, 2019, an increase of 110% from $435 million in fiscal 2018 and $218.6 million in 2017. Its losses, meanwhile, hit $245.7 million in 2019, up significantly from a reported net loss of $47.9 million last year.Be it as it may, the company gave out the warning that they might not turn a profit or maintain profitability in the future.Since everyone is shocked with disastrous and probably delayed plans on WeWork IPO, this is a pretty brave thing to do. Peloton has earned itself a valuation of more than $8 billion for its roadshow this week and if most of 2019’s other IPOs are an indicator, it could see its valuation go even higher.Also, the probable thing to act on upon is their app. Peloton’s app has a better rating (at 4.9 at the Apple App Store) than WeWork and a very satisfied user network too. It is also continuously growing if it’s to believe to Peloton’s Apple App Store Rating Count of how often users provide an assessment of the product. It rose more than 80% since June 30 and keeps on going with more and more people who are buying into the concept Peloton’s founder began the company in 2012.Also, they seem to believe in themselves because they are staffing up. By doing this, they are potentially taking on more losses in order to just accommodate their clients. The company is hiring more ‘Field Operations’ professionals, who require selling high-end Peloton bikes and treadmills to consumers and then setting the products up in their homes.Peloton Plots IPO With the Stock That Could Be Worth $8 Billion
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Token Swap: Tether Announces Token Burn Of Over 400 Million USDT

Tether has shared a piece of information about a forthcoming token burn which according to announcement would take place shortly. According to a tweet from their official Twitter handle, Tether plans to shortly move 400 million Tether USDt as part of its Omni authorized but not issue pool to the issuance address in order to burn/revoke them. Tether will shortly move 400m Tether USDt as part of its Omni authorized but not issue pool to the issuance address in order to burn/revoke them. — Tether (@Tether_to) September 16, 2019 Tether Minted 300 million USDT Few Days Ago Few days ago, Tether took to Twitter to inform its users that it was coordinating with a third party to perform a chain swap. This was planned in order to convert some tokens from their original Omni to an Erc 20 protocol. At the time of the initial announcement, 300 million Tether USDt was announced to have been minted for the swap. However, these conversions took place few days ago as Tether promised the token swap wouldn’t disrupt the total supply. In few hours Tether will coordinate with a 3rd party to perform a chain swap (conversion from Omni to ERC20 protocol) for 300M USDt. Tether total supply will not change during this process. — Tether (@Tether_to) September 12, 2019 Whale Alert, a twitter account dedicated to alerting the community of big cryptocurrency transactions, noted the coinage described above in a tweet published on Sept. 12. As per a second tweet submitted as an answer to the first one, Whale Alert offered an explanation of the type of transaction: “This USDT mint is part of a swap. The corresponding burn on Omni has not taken place yet.” And finally, Tether is burning the Omni Tether that was already converted to ERC20. Until now, no token burn has taken place on Omni blockchain. In July, it was reported that Tether accidentally minted and burned 5 million USDT tokens. However, Tether long-standing controversy about issues relating to transparency and market manipulation. The post Token Swap: Tether Announces Token Burn Of Over 400 Million USDT appeared first on Coingape.

Zero-Knowledge Proof Solution from QEDIT Implemented Into Kaleido Blockchain For Transaction Privacy

Kaleido, a startup blockchain solution from ConsenSys Venture Studio has gone on record to become the first blockchain platform to implement the zero-knowledge proof solution from QEDIT—the crypto private company. A Non-compulsory Feature On September 13th, 2019 QEDIT shared a paress released with Cointelegraph where it stated that the partnership it had developed with Kaleido […]
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Cryptocurrency Exchange OKEx Korea Removes Privacy Altcoins

According to an official announcement made by the South Korean branch of OKEx, the popular exchange will delist five privacy coins as early as October 10, 2019. Complications for Privacy Coins Trading of Monero (XMR), Dash (DASH), ZCash (ZEC), Horizen (ZEN) and Super Bitcoin (SBTC) on OKEx Korea will be suspended on October 10, 2019,Read MoreRead More. The post by Edoardo Vecchio appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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