EHang may soon be joining the growing list of Chinese companies seeking US IPO’s.

Chinese drone maker and eVTOL manufacturer, EHang, has filed an application for its IPO in the United States. The company aims to offer 10 to 15% of its shares for sale and could raise as much as $200M USD, however EHang declined to provide a valuation amidst volatile market conditions.

Its initial Series A funding round took place in December 2014, when GGV Capital, ZhenFund, PreAngel and private investor Nick Yang raised $10 million. GGV Capital led the round. The second funding round was for $42 million where the company upped its number of investors to seven, including all the above (sans Yang), GP Capital, Microsoft Accelerator Beijing, OFC and LeBox Capital. This time, GP Capital led the round.

EHang continues to complete passenger demonstration flights in Guangzhou. The company seeks a US IPO.

EHang continues to complete passenger demonstration flights in Guangzhou. The company seeks a US IPO.

Details of the IPO pertaining to its timeline and fundraising amounts are still being drafted, however it is known that the deal is being coordinated by Credit Suisse Group AG and Morgan Stanley, as reported to Bloomberg News.

Representatives from EHang and Nasdaq declined to comment on the IPO application.

EHang offers a diverse product lineup including specialized drones and passenger eVTOL vehicles. This year, the company become the first of its kind to receive special authorization from China’s aviation regulatory agency, the Civil Aviation Authority, to test its passenger-carrying vehicles. In recent weeks, TransportUP has reported on EHang’s selection of Guangzhou as its first pilot city and completed an interview with their chief marketing officer, Derrick Xiong.

EHang has taken more than 2,000 test flight both in and outside of China, including public demo flights in Vienna in April, where it flew 17 passengers in its two-seater 216 eVTOL prototype.

Why it matters: EHang will join the growing list of Chinese companies seeking a public offering in the United States despite strong efforts from Beijing to list domestically. The company has a diverse product portfolio and has demonstrated consistent results through its highly publicized test program. We believe EHang will be a strong competitor and the estimated $200M of funds from the IPO will help drive further technological advancement and public reception of eVTOL technologies.

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Posted by Ross Piscoran

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