China’s Two Biggest Car Rental Companies Plan IPOs This Year
China’s two biggest car-rental companies are planning to raise about a combined $600 million in initial public offerings this year to fund fleet expansion, said people with knowledge of the matter.
China Auto Rental Inc., the country’s biggest operator, plans to start marketing a $400 million Hong Kong IPO next month, said two of the people, who asked not to be identified discussing a confidential process. EHi Auto Services Ltd. plans to seek about $200 million in a U.S. initial sale in the fourth quarter, said two other people.
The companies are seeking money to expand their fleets as growth in leisure and business travel spurs the use of rental cars in China. China Auto Rental more than doubled its fleet size to 55,403 vehicles from the end of 2011 to March 31, according to a May 22 filing.
China Auto Rental had also considered a U.S. listing before ultimately opting to go public in Hong Kong.