The company aims to raise around $46.4 million through IPO
Ehang Holdings Limited, the Chinese drone manufacturer wants to raise $46.4 million through initial public offerings in the US market. This has been updated in its recent prospectus submitted to the Securities and Exchange Commission this December. The company is planning to list itself as EH on Nasdaq.
The company might offer 3.2 million American depositary shares at $12.50 to $14.50 per share. The money raised from the primary market will be used by the company for expanding its production facilities and improve research and development. On October 31 it filed the application, which placed a placeholder $100 million.
The commercial UAV market is bound to explode
The deal will be handled by underwriters namely Morgan Stanley, Needham & Company, Tiger Brokers, and Prime Number Capital. Originated from Guangzhou in the year 2014, Ehang based its priorities in the tech sector. Its autonomous aerial vehicles and services related to urban air mobility, smart city management, and aerial media solutions are some products that are pretty high on the customers’ list.
While quoting Frost & Sullivan, it mentioned that the international market for unmanned aerial vehicles was $3.7 billion in 2018 and the constant rise might take it to $103.7 billion in 2023. The market for an unmanned aerial vehicle might grow at the compound rate of 95%. At this point in time, China is leading the market for commercial UAV and it will contribute 48% to the total global growth by 2023.
The collaboration with Heli Chuangxin Real Estate co, Ltd. was announced after IPO filing. Heli will build an urban air mobility demonstration project in Guangzhou. The partnership comes in at the right time as Ehang is preparing for the commercial launch of its autonomous flying taxis.
