Nov 14 – Major Chinese car rental company eHi hit yet another snag with its US IPO, as it deals with allegations of falsified corporate financial data in its prospectus.
eHi received a report from an independent source alleging that eHi inflated the residual value of a number of their vehicles that no longer met requirements for rental and that eHi overstated the scale of its fleet by including lost vehicles in the count.
A law firm hired by eHi to investigate these allegations has found them to be unfounded. However, there are concerns that the allegations will be leaked on online forums, causing damage to eHi’s reputation and in turn affecting its share price.
eHi’s IPO originally planned to issue 10 million American Depositary Shares at US$12-14 per share on November 14 to raise US$180 million to $200 million. US financial website iposcoop reveals that the IPO will now be delayed to November 17.(Translation by David)
