Zhongchao, a Medical Learning Platform, Files for $15 Million IPO
The Chinese company, which operates a medical content sharing platform, expects to trade under the symbol "ZCMD" on the Nasdaq.
Zhongchao Inc., a Chinese internet platform providing medical information, education and training services, seeks to raise up to $15 million in an initial public offering in New York.
The Shanghai company, founded in 2012, operates under the MDMOOC brand (a learning and training platform for clinical medical practice). The services it provides include clinical practice training, open classes in popular medical topics, interactive case studies, academic conferences and workshops, as well as continuing education courses and related content.
For 2018 and the six months through June 2019, Zhongchao reported revenue of $12.9 million and $7 million, respectively. Net income was $3 million and $1.7 million for the respective periods, according to the company's prospectus filed with the U.S. Securities and Exchange Commission on Thursday. The company generates revenue from two business lines, MDMOOC and Sunshine Health Forums.
The company said that MDMOOC's major customers are Chinese enterprises and non-for-profit organizations (NFP). For the six months ended June 30, 2019, the company generated revenue from a total of 50 customers, of which 16 customers were NFP and 34 customers were pharmaceutical enterprises, which accounted for 66.4% and 33.6% of the total revenues, respectively. The company said in the filing that it plans to focus on the development of Sunshine Health Forums in the future.
Zhongchao said it plans to use the proceeds from its offering for the development of online course content, platform integration and business expansion.
The company aims to apply to list its American depository shares on the Nasdaq Capital Market under the symbol "ZCMD," according to the report.
Network 1 Financial Securities Inc. is acting as the underwriter on the deal. The exact terms of the IPO have yet to be determined.