Hong Kong Pharma Digital Technology, which provides cross-border supply chain and distribution services for OTC drugs in China, filed on Tuesday with the SEC to raise up to $8 million in an initial public offering.
The Hong Kong-based company plans to raise $8 million by offering 1.5 million shares (33% secondary) at a price range of $4 to $6. At the midpoint of the proposed range, Hong Kong Pharma Digital Technology would command a market value of $55 million.
The company’s business consists of two main categories: OTC pharmaceutical cross-border e-commerce supply chain services, and OTC pharmaceutical cross-border procurement and distribution. Through its engagement with OTC pharmaceutical suppliers, logistics companies, and merchants who operate stores on Chinese e-commerce platforms, the company offers a one-stop solution for Mainland Chinese customers who wish to access OTC pharmaceutical products outside Mainland China. Its services include pre-consultation, product information review, and procuring overseas OTC pharmaceutical products, among others.
Hong Kong Pharma Digital Technology was founded in 2016 and booked $17 million in revenue for the 12 months ended March 31, 2024. It plans to list on the Nasdaq under the symbol HKPD. The company filed confidentially on March 29, 2024. Bancroft Capital and Eddid Securities and Futures are the joint bookrunners on the deal.