US-based car rental company Hertz is set to invest $30m in China-based car rental company China Auto Rental (CAR) when it goes public, China Money Network reported on Monday.
CAR plans to issue 426 million new shares priced between HK$7.50 (US$0.97) and HK$8.50 (US$1.10), and could raise up to HK$3.62bn (US$467m).
Hertz will buy shares as one of the cornerstone investors, along with hedge funds Hillhouse Capital Management and Falcon Edge Capital, and asset management firm Waddell & Reed Financial, each of which will also invest $30m.
Chinese state-owned firm China Chengtong Holdings Group and US-based investment firm Davis Selected Advisers are set to each invest $20m.
Hertz already owns a 19% share of CAR after investing an undisclosed amount in September 2013. Existing shareholders also include venture firm Kleiner Perkins Caufield & Byers and Warburg Pincus, the private equity firm that invested $200m in the company in 2012.