Ehang, a China-based aerial vehicle developer backed by financial services provider Shanghai International Group, on Thursday filed for a $100m initial public offering on the Nasdaq Global Market.
The company plans to issue American Depositary Shares, though terms have not yet been set. Reports in March this year suggested Ehang would target between $400m and $500m in proceeds.
Founded in 2014, Ehang designs autonomous aerial vehicles as well as supporting technologies and infrastructure for consumer and commercial applications, including logistics, smart city management, aerial media and passenger transportation.
Ehang collected $42m in a series B round led by GP Capital, an investment vehicle of Shanghai International Group, in 2015.
The round also included existing shareholders GGV Capital, ZhenFund, Lebox Capital, OFC and PreAngel, all of which had participated in a $10m series A in 2014. ZhenFund and Lebox had already provided an unspecified amount earlier that same year.
Ehang additionally collected $850,000 in a crowdfunding campaign in 2015.
The company expects to spend proceeds from its proposed offering on R&D activities, domestic and international sales and marketing efforts, an expansion of its production capacity and the development of urban air mobility services.
Founder Huazhi Hu is the company’s largest shareholder with a 45.6% stake through an investment vehicle called Genesis Rising. GGV Capital currently owns a 10.8% stake, while ZhenFund retains 7.6% and family office Ballman holds 7.1%.
Morgan Stanley & Co, Credit Suisse Securities (USA), Needham & Company and Tiger Brokers (NZ) are acting as underwriters for the proposed offering.
– Image courtesy of Ehang
