The IPO Buzz: 1 Chinese IPO in A Holiday Week

The Presidents Day holiday closes Wall Street down on the third Monday of February. So this week, the Street is facing just a four-day work week. Only one IPO is on the calendar – a small-cap Chinese healthcare company.

ZHONGCHAO (ZCMD proposed), based in Shanghai, provides healthcare information, education and training services to healthcare professionals and the public in China. Formed in 2012, the company employs about 90 people. Zhongchao produced about $3.9 million in net income on $14.6 million of revenue for the 12 months ending June 30, 2019.

The company plans to offer 3.5 million ordinary shares at $4 to $4.50 each to raise $14.9 million on Tuesday evening, Feb. 18, to trade Wednesday morning, Feb. 19. This is a NASDAQ listing.

(For more information, please check the profile on IPOScoop.com’s website.)

China’s Unicorns

Being from China has its merits. Consider the following. CBInsights’ recent posting lists the total number of unicorn companies at 450 with a total cumulative valuation of $1,327 billion. (A unicorn is a private company with a valuation over $1 billion, according to CBInsights.) The two largest unicorn companies on this list are from China:

  • ByteDance, a Chinese content platform known for its hit video-sharing app TikTok, has a valuation of $75 billion. (The company is also known as Toutiao, after “Headlines,” its core product.)
  • Didi Chuxing, a Chinese company providing app-based transportation services, has a valuation of $56 billion. (It’s been called China’s Uber.)

Looking Ahead

This brings us to the week of Feb. 24, when the IPO Calendar is blank so far. But that could change quickly when the U.S. Securities and Exchange Commission’s filing window opens again for business on Tuesday, Feb. 18.

Stay tuned.

Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinion.