by Michael Willoughby
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, according to the South China Morning Post.
“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,” reported the Post.
“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,” sources told the paper.
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.
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