AAA Ehang edges towards $500m IPO

Ehang edges towards $500m IPO

Ehang, a China-headquartered unmanned aerial vehicle developer that counts financial services provider Shanghai International Group as an investor, is looking to raise up to $500m in a US initial public offering, Reuters reported yesterday.

The company is planning to float this year, with the IPO set to be run by investment banks Morgan Stanley and Credit Suisse, two people with direct knowledge of the deal told Reuters.

Ehang could raise between $400m and $500m in the IPO, though another source told the publication the offering is unlikely to reach the upper range.

Founded in 2014, Ehang has developed autonomous aerial vehicles that are capable of mapping and photographing landscapes. The drones can be controlled through a mobile app, tablet or desktop computer, and are used in a range of commercial industries as well as by ordinary consumers.

The company had received $42m in a 2015 series B round led by GP Capital, an investment vehicle representing Shanghai International, which invested alongside GGV Capital, ZhenFund, Lebox Capital, OFC and PreAngel. The latter five had previously backed the company’s $10m series A round the year before.

Ehang also raised $850,000 in a 2015 crowdfunding campaign, following an undisclosed amount of funding from ZhenFund and Lebox the previous year.

Image courtesy of Ehang.

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