Davis Polk & Wardwell and Clifford Chance have taken lead roles on Chinese cryptocurrency-mining chip maker BitMain Technologies Holding Co.’s upcoming initial public offering in Hong Kong, which could raise as much as $3 billion, according to media reports.
The five-year-old company designs semiconductor chips specialized for cryptocurrency mining and is the largest such chipmaker in the world, accounting for 74.5 percent of the market share, according to market research firm Frost & Sullivan.
Beijing-based BitMain stated in a prospectus that it made $742 million in profit during the first six months of this year. The proceeds of the IPO will be used to invest in research and development, as well as for business expansion. In August, BitMain raised $442 million in a funding round, which valued the company at $16 billion.
Davis Polk partners Li He and Bonnie Chan in Hong Kong are advising BitMain on its listing, with the Commerce & Finance Law Offices serving as Chinese counsel to the issuer.
Clifford Chance Beijing partner Tim Wang, Shanghai partner Jean Thio and Hong Kong partner Fang Liu are advising China International Capital Corp. as the sole sponsor for the IPO. Shanghai-based boutique CM Law Firm is advising the bank on Chinese law.
BitMain’s Hangzhou-based rivals Canaan Inc. and Ebang International Holdings Inc. have also filed for IPOs in Hong Kong. Canaan aims to raise at least $400 million, down from $2 billion touted earlier this year, while Ebang is targeting $1 billion, according to Reuters.
Canaan’s upcoming listing is being handled by Simpson Thacher & Bartlett on the issuer’s side and Freshfields Bruckhaus Deringer on the underwriter’s side. Hogan Lovells is representing Ebang on its planned IPO, while Norton Rose Fulbright is serving as underwriters’ counsel.
BitMain has adopted a dual-class share structure, which the Hong Kong Stock Exchange allowed since the end of April to attract listings from innovative Chinese companies. Since then, several Chinese technology companies have had multibillion-dollar IPOs in Hong Kong, such as smartphone maker Xiaomi Corp. and e-commerce site Meituan Dianping.