On the 19th of September, China’s leading car rental company CAR Inc. was officially listed on the Hong Kong Stock Exchange with an opening price of 10 HK$, 17.6% above their previously published issue price of 8.50HK$.
CAR Inc. has raised 3.449 billion HK$ in total and has announced that around 65% of the net capital will be used to purchase additional vehicles while 19% will be used to repay bank loans and another 10% will be for developing new products and services. The remaining funds will be used to supplement operational funds and other regular corporate expenses.
CAR Inc. will repay 3 loans by the end of 2015 while at the same time increasing their car fleet from 44 thousand to 59 thousand vehicles. In the first half of the year CAR Inc.’s revenue reached 1.862 billion RMB, a year-over-year growth of 61.9%.
CAR Inc.’s original investors include private equity fund Warburg Pincus and Hertz Global. This offering has attracted cornerstone investors like Hillhouse Capital who have agreed to purchase 130 million US$ in shares and with an agreement not to sell the shares until six months after of the IPO
The underwriters of this IPO include Morgan Stanley, Credit Suisse, China Renaissance, GF Securities, and CICC.(Translated by David)
