Huobi IPO Speculation Surfaces as Crypto Exchange Buys Public Company

Huobi has purchased a majority stake in Pantronics Holdings, spurring speculation that the exchange is planning a backdoor listing deal.

Chinese cryptocurrency trading platform Huobi has reportedly bought a majority stake in Hong Kong-listed electronics manufacturer Pantronics Holdings, spurring speculation that the exchange is planning an initial public offering (IPO) through a reverse takeover.

Huobi has not made an official statement explaining the exchange’s motivation and intentions regarding the purchased stock. Reportedly, the company is waiting for approval by HKEX.

Speaking to the media, Li said that this was “just a rumor”. He further explained that the cryptocurrency exchange business is currently not fully compliant on a global scale, so a backdoor listing would be very difficult to operate. Li added that he believes the “traditional financial market will embrace the blockchain economy in the future”.

In a separate development, Randi Zuckerberg, the elder sister of Facebook founder Mark Zuckerberg, has joined the advisory board of Huobi to develop the company’s new public blockchain, according to a recent press release. Experts on the committee provide guidance on topics ranging from the basic technology of blockchain to industrial applications, commercial modeling, as well as governance and development issues.