Zhongchao Inc, a Chinese internet platform providing medical information, education and training services, is aiming to raise $15 million in an initial public offering (IPO) on the Nasdaq Capital Market.
The company, which initially filed with the U.S. Securities and Exchange Commission (SEC) in late November 2019, will offer 3.5 million Class A ordinary shares at a price range between $4.0 and $4.5 apiece, according to a prospectus updated last December. It represents a market capitalization of $107 million at the midpoint of the pricing terms.
Created in August 2012, Zhongchao delivers a range of healthcare information and education services, including online and onsite health information services, healthcare education programs, open classes of popular medical topics, among others, to healthcare professionals and the public in China.
The company operates MDMOOC, which provides medical education and training programs to healthcare professionals, and Sunshine Health Forums that mainly serves the general public. The MDMOOC platform recorded over 390,000 registered users as of November 2019.
The firm currently generates most of the revenues from MDMOOC. For the six months ended June 30, 2019, Zhongchao earned money from a total of 50 customers, including 16 not-for-profit organizations (NFPs) and 34 pharmaceutical enterprises.
Shanghai-based Zhongchao targets the Chinese market of over 12 million healthcare professionals, which include 90 per cent of more than 3.6 million doctors who acquired medical information through online platforms, according to the 2018 Statistical Bulletin on the Development of China’s Health and Wellness Industry.
The company recorded a revenue of $6.99 million in the six months ended June 30, 2019, up 34 per cent compared to the same period in 2018, as the net income more than tripled from $551,205 to $1.71 million, according to the prospectus.
It will float shares under the symbol “ZCMD.” New Jersey-based full-service broker-dealer Network 1 Financial Securities is the sole underwriter on the deal.