Chinese Drone Maker EHang Seeks Nasdaq IPO
According to Bloomberg, Guangzhou-based drone maker EHang submitted its confidential filing to Nasdaq. The company is aiming to float 10% to 15% of its shares on the exchange, with the companies valuation rumored to be around $200 million, according to someone familiar with the situation.
While Credit Suisse and Morgan Stanley are rumored to be leading the offering, but declined to comment on the deal at this time. In addition both EHang and Nasdaq did not provide any comment on the company’s potential share-sale. EHang’s drones are currently used mostly for aerial photography and other commercial uses, but the firm has a partnership with DHL to collaborate on short distance delivery services. In addition, EHang has been working with Yonghui Superstores, a grocery chain, to provide aerial food delivery services.
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While EHang is still dwarfed in the commercial drone market by Shenzhen-based DJI, the company has been authorized by the Civil Aviation Administration of China as the first company to test autonomous aerial passenger vehicles, and trialing low-altitude drones flights to transport passengers in Guangzhou. The firm aims to produce these passenger drones, dubbed the EHang 184, by the end of next year. As the company looks to expand beyond photograph and delivery services, the potential of passenger drones is core to EHang’s mission of “Let humankind fly freely like a bird”.