Chinese medicine product distributor Henghong Technology (HCPC.US) raises IPO scale, plans to raise $33 million.

Headquartered in China, traditional Chinese medicine product distributor Henghong Technology (HCPC.US) on Monday raised the proposed transaction size for its upcoming IPO. The company, based in Chengmai County, China, now plans to issue 5 million shares at a price of $6 to $7 per share, aiming to raise $33 million. Previously, the company had applied to issue 2 million shares at a price of $4 to $6 per share. Based on the midpoint of the revised price range, Henghong Technology will raise 225% more than initially anticipated, with a market valuation reaching $163 million. According to the prospectus, Henghong Technology primarily engages in the distribution of pharmaceutical products in China through Hengcheng Health, with the main revenue coming from the distribution of traditional Chinese medicine and chemical medical products, as well as providing promotional and marketing services. Key products include medications for treating cold and cough (such as Cold and Heat Cleansing Granules, Wind Cold Cold Granules, and Silver Quarreling Detox Granules) as well as tonic products (such as Blood Nourishing and Calming Granules, Yin Nourishing and Fluid Generating, Qi and Blood Nourishing Shengmai Granules, Kidney Reinforcing and Essence Benefiting He Shou Wu Granules, and Waist Strengthening and Kidney Reinforcing Zhuang Yao Jian Shen Wan). Its distribution network spans 22 provinces and autonomous regions in China. By 2025, 93.6% of the companys product procurement will come from a single supplier, of which the chairman of Henghong Technology also serves as the general manager. Henghong Technology was established in 2008 and plans to list on NASDAQ under the ticker HCPC. Kingswood Capital Markets is the sole book manager for this transaction.