Chinese drone maker Ehang Holdings Limited seeks to raise up to US$46.4 million in an initial public offering in the US, according to its updated prospectus filed with the Securities and Exchange Commission on December 4.
Photo credit: Ehang
Ehang, which is planning to list under the ticker EH on the Nasdaq, will offer 3.2 million American depositary shares at US$12.50 to US$14.50 apiece.
The company will use the proceeds from the IPO mainly for the expansion of its production capacity and research and development.
Ehang set a placeholder of US$100 million when it filed its application on October 31.
Morgan Stanley, Needham & Company, Tiger Brokers, and Prime Number Capital are the underwriters for the deal.
Founded in 2014, Ehang is a Guangzhou-based tech company that provides customers in various industries with autonomous aerial vehicle-related products and commercial solutions, covering urban air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions.
Citing Frost & Sullivan, the company said in its prospectus that the global commercial market for unmanned aerial vehicles was worth US$3.7 billion in 2018 and is expected to reach US$103.7 billion in 2023, representing a compound annual growth rate of 95%. China is leading the commercial UAV market and is expected to account for 48% of the global market in 2023.
Ehang announced shortly after the IPO filing a strategic partnership with property developer Heli Chuangxin Real Estate Co. Ltd. to build out an urban air mobility demonstration project in Guangzhou. It said the tie-up is a “major milestone” as it continues to prepare for the commercial launch of its autonomous flying taxis.
Editing by Charmaine de Lazo
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