Chinese Drone Maker EHang Eyes $100M IPO

Chinese passenger drone manufacturer EHang expects to raise $100 million in the coming IPO, with Morgan Stanley, Credit Suisse, NEEDHAM&COMPANY and Tiger Securities as underwriters.

According to the company’s prospectus, EHang has to date delivered a total of 38 manned AAVS for testing, training and demonstration purposes, and 28 outstanding orders for manned AAVS have been placed. At the same time, two command and control centers for smart city management have been developed.

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On financial data, in 2017 and 2018, the operating revenue of EHang reached 31.7 million yuan and 66.49 million yuan respectively, with a year-on-year increase of 109.8%. The net loss totaled 86.58 million yuan and 80.46 million yuan respectively, with a year-on-year decrease of 7.1%.

In the first half of 2019, EHang earned 32.39 million yuan, 15.6% less than the 38.36 million yuan earned by the company in the same period of 2018. The net loss reached 37.64 million yuan, 42.1% more than 26.5 million yuan in the same period last year.

EHang introduced the world’s first AAV model EHang 184 in January 2016 at CES (International Consumer Electronics Exhibition). In March 2018, the company delivered the first two seater AAV EHang 216 to customers for test training and demonstration purposes, paving the way for the future development of aerial taxi services.