The company prepares for their predicted $100 million Initial Public Offering 

eVTOL manufacturer EHang recently filed an SEC F1 with the U.S. Securities and Exchange Commission (SEC) in preparation for their predicted $100 million initial public offering (IPO) on Nasdaq. This indicates EHang’s intention to offer Class A ordinary shares before the end of 2019, and will be listed under Nasdaq symbol “EH”. This IPO would make EHang the first of many eVTOL startups to go public.

In the filing, EHang indicated that their main focus for now would be on the Chinese market. With the state of US and European aviation regulatory frameworks still in uncertainty in regards to eVTOLs, the preference for their domestic market is not unsurprising. According to the F1 filing, EHang have delivered 38 AAVs since March 2018 to various partners and prospective distributors, including freight group DHL-Sinotrans, and “unfulfilled orders” for 28 more aircraft.

During the first six months of 2019, EHang reported a net loss of $5.5 million, which was 42% higher than the loss it incurred in the same period for 2018. Revenue for the first six months of 2019 were also down by 15.6% at $4.7 million. During 2017, EHang subsidiaries in Germany and the U.S. filed for bankruptcy and these cases are still being resolved. The company indicated that these companies traded as sales organizations for consumer drones before it decided to withdraw from the market in those countries.

Why it’s important: EHang has a diverse product portfolio and demonstrated reliability and consistency in their products and deliveries. The funds provided by the IPO could help EHang with an increased focus in a smaller market, and allow it to expand naturally in the coming years.

Source // AIN Online

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Posted by Ian Shin

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