Baikang Biological, Provider of Gingko Products, Seeking Up to $10 Million IPO

The company seeks to raise between $6 million and $10 million on the Nasdaq under the symbol "BKSW."

Author: Binwei Wang   

Baikang Biological Group Holdings Ltd. has applied for an initial public offering in New York, seeking to raise between $6 million and $10 million.

Operating from the Ginkgo Biomedical Science & Technology Industrial Park located in Pizhou, Jiangsu Province, the company provides health foods and household products containing ginkgo and other herbal ingredients. Baikang sells dietary supplements, skin care and household essentials, gingko-infused liquor, blended edible oil, and other household items containing gingko, according to its preliminary prospectus filed with the U.S. Securities and Exchange Commission Friday.

In its filing, Baikang, said its revenue for six months through October 31 of last year reached $13 million, up 3 percent from the preceding year. It reported net income of $6.8 million for the same period compared with $7.4 million for a year prior. Baikang said It had $23 million in cash and cash equivalents as of October 31, 2018.

Baikang said it intends to use the proceeds of its IPO for general corporate purposes. These may include increase and diversificate its product distribution, research and development, infrastructure building, human capital management and team building, and working capital, it added.

Joseph Stone Capital LP is the sole underwriter on the deal. In case of over-subscription, the firm may acquire an additional 15 percent of the common shares of Baikang's offering.

Baikang seeks to trade its shares under the ticker symbol "BKSW" on the Nasdaq Capital Market.