Zhengye Biotechnology closed a $6 million IPO, listing 1.5 million shares on Nasdaq under "ZYBT" for veterinary vaccine development.
Quiver AI Summary
Zhengye Biotechnology Holding Limited, a veterinary vaccine manufacturer in China, has successfully closed its initial public offering, selling 1.5 million ordinary shares at $4.00 each, amounting to gross proceeds of $6 million. The shares debuted on the Nasdaq Capital Market under the ticker "ZYBT" on January 7, 2025. The company has also given its underwriter an option to purchase an additional 225,000 shares to cover any over-allotments. Proceeds from the offering will be directed towards acquiring vaccine production companies and research and development projects. Zhengye, through its Jilin-based subsidiary, specializes in livestock vaccines and has a portfolio of 44 products available domestically and internationally. The offering was managed by Kingswood Capital Partners.
Potential Positives
- Zhengye Biotechnology successfully closed its initial public offering, raising $6 million, which indicates strong investor interest in the company.
- The company’s shares have been listed on the Nasdaq Capital Market under the ticker symbol "ZYBT," enhancing its visibility and credibility in the investment community.
- Proceeds from the Offering will be strategically utilized for acquiring vaccine production companies and conducting research and development projects, positioning the company for future growth.
- The company's established presence in the veterinary vaccine market, evidenced by its 44 product offerings and experience, provides a solid foundation for potential return on investment from the IPO funds.
Potential Negatives
- The company raised only $6 million from its initial public offering, which may indicate a lack of confidence from investors in its growth potential.
- The requirement for the company to clarify that the offering does not constitute an offer to sell securities in certain jurisdictions may suggest regulatory complications or limitations on its market reach.
- The company has granted an option to the underwriter for additional shares, which may dilute existing shareholder value if exercised.
FAQ
What is the purpose of Zhengye Biotechnology's initial public offering?
The proceeds will be used for acquiring vaccine production companies and conducting R&D projects.
When did Zhengye Biotechnology start trading on Nasdaq?
Zhengye Biotechnology commenced trading on the Nasdaq Capital Market on January 7, 2025.
How many shares were offered in the initial public offering?
The company offered 1,500,000 ordinary shares at a public offering price of US$4.00 each.
Who managed the initial public offering?
Kingswood Capital Partners, LLC acted as the sole book-running manager for the Offering.
Where can investors find the prospectus for the offering?
The prospectus can be obtained from Kingswood or via the SEC's website at www.sec.gov.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
Jilin, China, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Zhengye Biotechnology Holding Limited (Nasdaq: ZYBT) (the "Company" or "Zhengye"), a veterinary vaccine manufacturer that encompasses research, development, manufacturing, and sales of veterinary vaccines, with a focus on livestock vaccine in China, today announced the closing of its initial public offering (the "Offering") of 1,500,000 ordinary shares at a public offering price of US$4.00 per ordinary share. The ordinary shares have been approved for listing on the Nasdaq Capital Market and commenced trading on January 7, 2025 under the ticker symbol "ZYBT."
The Company received aggregate gross proceeds of $6 million from the Offering, before deducting underwriting discounts and other related expenses. Additionally, the Company has granted the underwriter an option, exercisable within 45 days from the closing date of the Offering, to purchase up to an additional 225,000 Ordinary Shares at the public offering price, less underwriting discounts, to cover the over-allotment, if any.
Proceeds from the Offering will be used for acquiring vaccine production companies and conducting R&D projects.
Kingswood Capital Partners, LLC ("Kingswood") acted as the sole book-running manager for the Offering. Hunter Taubman Fischer & Li LLC acted as U.S. securities counsel to the Company, and VCL Law LLP acted as U.S. counsel to Kingswood in connection with the Offering.
A registration statement on Form F-1 relating to the Offering was filed with the U.S. Securities and Exchange Commission (the "SEC") (File Number: 333-276436) and was declared effective by the SEC on December 20, 2024. The Offering was made only by means of a prospectus, forming a part of the registration statement. Copies of the prospectus relating to the Offering may be obtained from Kingswood, Attn: Tower 56, 126 E. 56th Street, Suite 22S, New York, NY 10022, or by telephone at +1-732-910-9692. In addition, a copy of the prospectus relating to the Offering may be obtained via the SEC's website at
www.sec.gov
.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Zhengye Biotechnology Holding Limited
Through Jilin Zhengye Biological Products Co., Ltd., the Company’s operating entity based in Jilin, China, Zhengye Biotechnology Holding Limited focuses on the research, development, manufacturing and sales of veterinary vaccines, with an emphasis on vaccines for livestock. For over 20 years, the operating entity has been committed to enhancing the health of animals. The operating entity has 44 veterinary vaccines, including vaccines for swine, cattle, goats, sheep, poultry, and dogs. The operating entity’s products are available in 28 provincial regions across China and are exported overseas to Vietnam, Pakistan, and Egypt. The operating entity has three GMP veterinary vaccine production floors, including 13 GMP vaccine production lines, one quality examination center, and one animal facility for vaccine development. The operating entity has 49 employees who have over a decade of experience in the veterinary vaccine industry. For more information, please visit the Company’s website:
http://ir.jlzybio.com
.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions in this prospectus. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
For more information, please contact:
Zhengye Biotechnology Holding Limited
Investor Relations Department
Email:
ir@jlzybio.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email:
investors@ascent-ir.com
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