Chinese seed oil company Huake Holding Biology revises terms ahead of $6 million US IPO

Huake Holding Biology, which makes camellia seed oil products in China, revised the terms for its upcoming IPO on Friday.

The Lu'an, China-based company now plans to raise $6 million by offering 1.3 million shares at a price range of $4 to $6. At the midpoint of the range, it would command a market value of $31 million. The company had previously set terms in September 2021, planning to raise $25 million at a $125 million market cap. At the revised terms, which reflect a 1-for-4 reverse stock split effected earlier this month, Huake Holding Biology will raise 75% less in proceeds compared to its previous IPO attempt.

Because the company is expected to have a post-IPO market cap of less than $50 million, Huake Holding Biology will be excluded from Renaissance Capital's 2022 IPO stats.

Huake Holding Biology, which conducts operations through controlled entity Anhui Aokai Fa Grease Technology, or Aokai Fa, produces camellia seed oil in the Anhui province of China. The company is vertically-integrated, conducting scientific research, farming, production, and sales. Its main products include Camellia oil and camellia oil cake, a camellia oil reside used as a pond cleaning agent, weed killer, bug killer, and organic fertilizer.

Huake Holding Biology was founded in 2011 and booked $21 million in sales for the 12 months ended March 31, 2022. It plans to list on the Nasdaq under the symbol HUAK. EF Hutton is the sole bookrunner on the deal.