Zhitong Finance App learned that on Wednesday, Chinese cognitive health neuric acid dietary supplement manufacturer Zhongyuan Biotech announced its IPO terms. The company is currently listed on OTC under the stock code “ZHYBF”. According to the prospectus, the Hong Kong-based company plans to issue 2 million shares at $4-6 (25% will be a secondary offering) to raise $10 million. Based on the midpoint of the proposed range, the market value of Zhongyuan Biotech will reach 96 million US dollars.

According to information, through the operation of its subsidiary Baofeng Biotech, the company is engaged in neuric acid research, development of herbal and chemical drugs based on neuric acid, and sales of health products containing neuric acid. Neuric acid is a long-chain unsaturated omega-9 fatty acid that is an important component of myelin biosynthesis in the central and peripheral nervous system. The company's neuric acid is extracted from the seeds of the Aceraceae plant ingot, and the company notes that neuric acid plays a key role in traditional Chinese medicine. Zhongyuan Biotech claims that neuric acid can enhance brain function and may be effective in maintaining or improving brain health in children with ADHD, Alzheimer's patients, and the elderly.

Zhongyuan Biotech was founded in 2012 and had revenue of 2 million US dollars in the 12 months ending September 30, 2022. The company plans to list on Nasdaq, but has not yet chosen a stock code (RC code: ZYBT.RC). Revere Securities is the underwriter of this deal.