Chinese drone maker EHang is said to file for IPO with Nasdaq
- The Guangzhou-based start-up plans to float 10 per cent to 15 per cent of its shares, with an eye on raising as much as US$200 million
EHang, one of China’s largest drone makers, has made a confidential application for an initial public offering (IPO) with Nasdaq, according to people with knowledge of the matter.
The Guangzhou-based company plans to float 10 per cent to 15 per cent of its shares, with the company’s valuation not yet set because of volatile market conditions, said one of the people, who asked not to be identified because the plans are not public. The firm may raise as much as US$200 million in the IPO, one of the people said.
Deliberations are ongoing and details of the offering, including timeline and fundraising size, could still change, the people said. Credit Suisse Group and Morgan Stanley are working on the deal, the people said.
Representatives for EHang and Nasdaq declined to comment on the technology start-up’s share-sale plans. Morgan Stanley and Credit Suisse did not immediately respond to requests for comment.
Founded in 2014, EHang specialises in drones used for aerial photography and other commercial applications. The company has a partnership with DHL-Sinotrans International Air Courier to tackle last-mile delivery in China, and is working with grocery chain Yonghui Superstores to use drones for food delivery.
In January, EHang was authorised by the Civil Aviation Administration of China as the first company to test autonomous aerial passenger vehicles, and is trying out low-altitude drones to shuttle passengers in Guangzhou, capital of the southern coastal province of Guangdong.
The start-up is working with Austrian partner FACC to produce hundreds of passenger drones by the end of next year that could be the world’s first such aircraft.
In consumer drones, EHang is dwarfed by fellow Chinese manufacturer Shenzhen DJI Technology, the world’s largest maker of non-military drones. DJI also is reportedly seeking to go public.
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