EHi Car Services, Enterprise’s Best Buddy in China, Files for U.S. IPO
EHi Car Services Ltd., a Chinese auto rental and chauffeuring company, filed for an initial public offering in the U.S.
EHi, whose fleet includes more than 15,000 vehicles across China, filed with a $100 million placeholder amount, a figure that’s used to calculate fees and may change. The company and its selling shareholders ultimately plan to raise closer to $200 million in an IPO, two people familiar with the matter said in August.
[From Skift: eHi is Enterprise Rent-A-Car's exclusive strategic partner in China, and eHi is a preferred business partner of Chinese online travel agency Ctrip, which led a more than $100 million investment in eHi earlier this year.]
EHi derived two-thirds of last year’s revenue from rentals, with the rest from chauffeured car services, according to the filing. While EHi’s sales rose 26 percent in 2013 to $91.3 million, it hasn’t yet turned a profit. The Shanghai-based company plans to use the IPO proceeds to expand its fleet and service networks.
Concurrent with the IPO, Dongfeng Asset Management Co. and Kunyu Capital Ltd. have each agreed to buy shares, according to the filing.
JPMorgan Chase & Co., Goldman Sachs Group Inc. and Deutsche Bank AG are managing the offering. The company has applied to list its shares on the New York Stock Exchange under the symbol EHIC.