Zhongchao Sets Terms for $15.8 Million U.S. IPO
The company, which offers healthcare training on its digital platform, aims to sell ordinary shares at between $4 and $4.50 each.
Zhongchao Inc., which seeks to become publicly traded on the Nasdaq Capital Market, has set the terms for its expected offering.
Based in Shanghai, Zhonghai provides healthcare information, education and training services to healthcare professionals and the public in China.
According to a filing with the U.S. Securities and Exchange Commission on Thursday, it is offering 3.5 million Class A ordinary shares at an expected price range of $4 to $4.50 apiece. That will raise Zhongchao up to $15.75 million and lead to a market value of more than $107 million.
Underwriter on the deal, Network 1 Financial Securities Inc., may acquire an additional 525,000 shares to cover over-allotments, Zhongchao said.
The company first officially filed its preliminary prospectus in late November, reporting revenue of $12.9 million and $7 million for the year 2018 and the six months through June 2019, respectively. Net income was $3 million and $1.7 million for the respective periods.
Zhongchao said it plans to use the proceeds from its offering for the development of online course content, platform integration and business expansion.Zhongchao has applied to trade under the ticker symbol "ZCMD."