Chinese drone maker Ehang seeks to raise up to $46.4 million in its US listing, according to company filings, less than half of the $100 million placeholder used when it filed its application in late October.
Why it matters: Founded in 2014, the Guangzhou-based company specializes in commercial and aerial photography drones, and was the first to receive a license to test unmanned aerial passenger vehicles in China.
- In consumer drones, it is dwarfed by Shenzhen-based DJI, which is the world’s largest civilian drone maker and plans to go public in either Hong Kong or mainland China, according to Reuters.
Details: Ehang’s market capitalization could reach $742 million through its initial public offering (IPO) of 3.2 million American depositary shares (ADS) at a price range of $12.5 to $14.5 offered on Nasdaq, according to its renewed Form F-1 filed with the Securities and Exchange Commission on Thursday.
- Insiders including company CEO Hu Zhihua and co-founder Xiao Shangwen intend to purchase up to a total of $7 million worth of ADS in the offering.
- The company plans to trade under the ticket of “EH” on Nasdaq.
- In a previous version of the filing, Ehang set a placeholder of $100 million, more than double the size of the new target raise. An Ehang representative declined to comment, citing the company’s quiet period ahead of the IPO.
Context: The company filed its IPO application on Oct. 31, joining a wave of Chinese IPOs on US markets during the month.
- The company delayed its listing plans in April after lukewarm investor interest, according to Reuters.
- Ehang was valued at $420 million in its latest fundraise, a Series B backed by GGV Capital, Zhen Fund, and others in August 2015.
- Chinese drones are facing fierce criticism from US authorities, who introduced in September a bill barring federal agencies from buying drones with China-made equipment.