Huobi Became the Owner of a Controlling Stake in the Hong Kong Public Company
The Huobi currency exchange now owns a controlling stake in Pantronics Holdings Ltd., based in Hong Kong. At the moment, the company's market capitalization is $118 million.
The purchase of shares occurred under the reverse IPO scheme, the essence of which is that a private company can purchase shares in public, while avoiding the process of public offering and the need to comply with a number of regulatory rules related to this process.
Singapore's crypto exchange Huobi bought 73.73% stake in Pantronics Holdings Ltd., which made the crypto exchange area the actual controller of the company from the energy sector, which is a manufacturer of electrical and electronic goods related to power supply.
Previously Huobi CEO Li Lin denied the possibility of holding the so-called backdoor listing. He commented on this information as "this is just a rumor." He also noted that the backdoor listing at the moment is quite difficult to operate, because the cryptocurrency business doesn't fully meet all the requirements of the regulator.