Zhongchao (众巢医学), a Shanghai-based Internet platform, filed with the US Securities and Exchange Commission (SEC) to raise up to USD 15 million in an initial public offering. The company will be listed in Class A ordinary shares under the stock ticker symbol ‘ZCMD.’ At the moment, Network 1 Financial Securities is the sole underwriter on the deal, and the initial price is undisclosed.
The funds raised will be used to develop online course content, platform technology upgrades and system integration, and to expand the business.
The company, founded by Yang Weiguang (杨伟光), firstly launched its online platform ‘MDMOOC’ in 2013. The goal was to provide information, education, and training services to physicians and allied healthcare professionals, such as pharmacists and nurses primarily located in China, via Internet-Plus solutions.
Later, the healthcare firm launched an MDMOOC WeChat subscription account, along with an MDMOOC mobile app, to allow more qualified healthcare professionals to have access to online services.
Zhongchao claims to provide more than 1,429 education and training programs on its MDMOOC online platform, and about 95% of all programs are self-developed by the company research and development team.
In 2018, Zhongchao reported USD 12.8 million in revenue, an increase of 31% from USD 9.8 million in 2017, and the net income reached USD 3 million. After the first six months of 2019, the company had registered USD 6.9 million in revenue, and net income had reached USD 1.5 million.
The massive demand for knowledge learning and professional has opened many doors, and boundless opportunities for the companies focused on the Internet plus healthcare education.
According to the 2018 Statistical Bulletin on the Development of China’s Health and Wellness Industry, China currently has more than 12 million healthcare professionals, including more than 3.6 million doctors. Moreover, 90% of doctors in China obtained medical information through the professional online platform.
As of February 25, there were 156 Chinese companies listed on the US three major stock exchanges, NASDAQ, New York Stock Exchange, and NYSE American, with a total market capitalization of USD 1.2 trillion.
The Zhongchao IPO debut is another way for the Chinese healthcare company to demonstrate their progress and confidence in further achievements over the long run.