Zhong Yuan Bio-Technology Holdings, a Chinese producer of nervonic acid dietary supplements for cognitive health, lowered the proposed deal size for its upcoming IPO on Tuesday. In its latest filing, the company also disclosed financials for the fiscal year ended March 31, 2023. Zhong Yuan Bio-Technology is currently listed on the OTC under the symbol "ZHYBF".
The Hong Kong-based company now plans to raise $6 million by offering 1 million shares (100% primary) at a price range of $5 to $7. The company had previously filed to offer 2 million shares (75% primary) at a range of $4 to $6. At the midpoint of the revised range, Zhong Yuan Bio-Technology Holdings will raise 40% less in proceeds than previously anticipated.
Through operating subsidiary Bao Feng, the company engages in nervonic acid research, the development of nervonic acid-based herbal and chemical drugs, and the sale of health supplements containing nervonic acid. Nervonic acid is a long chain unsaturated omega 9 fatty acid that is an important component in myelin biosynthesis in the central and peripheral nervous system. Its nervonic acid is extracted from the seeds of Acer truncatum trees, which the company notes has a key function in traditional Chinese medicine. Zhong Yuan Biotech claims that nervonic acid may enhance brain function, and may be effective in retaining or improving the health of the brain in children with ADHD, patients with Alzheimer's disease, and the elderly.
Zhong Yuan Bio-Technology Holdings was founded in 2012 and booked $2 million in revenue for the 12 months ended March 31, 2023. It plans to list on the Nasdaq under the symbol ZYB. Revere Securities is the sole bookrunner on the deal.
