Huobi has quietly bought a 73.73% stake in Pantronics Holdings. Pantronics filed shareholding disclosures on August 21, 2018 to the Hong Kong Stock Exchange. The filing transferred over 221 million regular shares to the Chairman of Huobi Group.
The acquisition is a reverse takeover that seeks to recognize Huobi on the HKSE. Such a reverse takeover is oftentimes referred to as a backdoor listing. The deal is valued at $77 million with an average of $0.35 per share. However, Huobi is yet to offer an official statement regarding the reports.
The move adds Huobi to a growing list of companies that are planning IPOs. Earlier this week, Bitmain, Canaan Creative and Ebang Holdings revealed plans to go public.
Blocking backdoor listings
However, the company might encounter a lot legal hurdles before completing a backdoor listing. Last month, local media reported that the Hong Kong Stock Exchange would revise listing rules. The reports revealed that the exchange proposed measures targeting backdoor listings. The exchange intends to take stern measures against companies which participate in backdoor listing.
According to David Graham, Chief regulatory officer and head of listing at the exchange:
“We essentially allow a backdoor listing. But what [we want] to ensure is that when this happens, the quality of the assets and the ultimate combined company to be listed on our exchange have been through an appropriate due diligence and vetting process.”
A lot seems to be going on for Huobi. The company recently received a new committee member on its Huobi Chain Expert Advisory Committee. Randi Zuckerberg will provide comprehensive professional insights on blockchain technology.
In addition, the company launched ‘Huobi Project Center for Blockchain Projects’ and ‘Huobi Automated Listing Platform’. The additional services will streamline the token listing application process and hosting projects. The Huobi Project Center for Blockchain Projects will provide a platform for all projects listed on Huobi Global and HADAX.
In view of the reports, data from CoinMarketCap indicates a higher value for the Huobi Token. The token is up by 6% over the past 24 hours.