Zhong Yuan Bio-Technology Holdings, a Chinese producer of nervonic acid dietary supplements for cognitive health, announced terms for its IPO on Wednesday. The company is currently listed on the OTC under the symbol "ZHYBF".
The Hong Kong-based company plans to raise $10 million by offering 2 million shares (25% secondary) at a price range of $4 to $6. At the midpoint of the proposed range, Zhong Yuan Bio-Technology Holdings would command a market value of $96 million.
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 September 30, 2022. It plans to list on the Nasdaq but has not selected a symbol yet (RC ticker: ZYBT.RC). Revere Securities is the sole bookrunner on the deal.
