EHang Holdings, a Chinese commercial drone developer, announced terms for its US IPO on Thursday.
The Guangzhou, China-based company plans to raise $43 million by offering 3.2 million ADSs at a price range of $12.50 to $14.50. Insiders intend to purchase $7 million worth of ADSs in the offering. At the midpoint of the proposed range, EHang Holdings would command a fully diluted market value of $742 million. After insider buying, it will have a float of just 5%. It originally filed for an IPO in October 2019 with a proposed deal size of $100 million.
EHang Holdings was founded in 2014 and booked $11 million in sales for the 12 months ended September 30, 2019. It plans to list on the Nasdaq under the symbol EH. It had been on our Private Company Watchlist since March 2019. Morgan Stanley is the sole bookrunner on the deal. Credit Suisse was removed as the #2 bookrunner in the latest filing; the bank was also removed from the last Chinese IPO, Canaan, when it launched. It is expected to price on Wednesday, December 11, 2019.
