The Chinese commercial drone developer EHang Holdings announced its terms for the US IPO on December 5. It plans to raise $43 million by offering 3.2 million American Depositary Shares (ADSs) within a price range of $12.5 to $14.5.
According to the updated prospectus, the number of shares that CEO Hu Zhihua owns will drop from 45.6% to 42.8% after the initial public offering (IPO), while he will hold 88.2% of aggregate voting power.
SEE ALSO: Chinese Drone Maker EHang Eyes $100M IPO
Founded in 2014, EHang Holdings is a technology innovation company designing, developing, manufacturing, selling and managing autonomous aerial vehicles (AAV) to provide solutions for passenger transport, logistics, smart city management and aerial media.
The company originally filed for an IPO in October 2019 with a proposed deal size of $100 million. The money raised in the IPO will be used to further research and develop products, services and techniques, as well as marketing.
In the last nine months, EHang’s revenues reached 67 million yuan ($9.5 million), increasing by 19.9% year on year. The company reported a net deficiency was 47 million yuan ($7 million), similar to that of last year.
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