eHi, the Chinese Ride-Hailing Giant, Plans $300 Million IPO on NYSE

The Chinese car rental company, eHi, based in Shanghai, is considering re-entering the American capital market through an initial public offering that could raise about $300 million as early as this year, according to sources familiar with the matter.

The company, which was delisted from the New York Stock Exchange in 2019 after an acquisition deal worth $850 million with “China International Capital Corporation”, “Deutsche Bank”, “J.P. Morgan Chase”, and “UBS”, is reportedly working with these parties on the potential sale of shares.

People said, “eHi company has submitted a confidential request for listing as soon as it obtains regulatory approvals in China.”

People who requested anonymity because the information is private said, “Discussions are in the early stages and details like size and timeline may change.”
The inclusion will be a rare comeback for a Chinese company to the US capital market.

Amid tensions between Beijing and Washington during the Trump administration, some Chinese companies listed in the United States such as Alibaba and Baidu sought a secondary listing in Hong Kong as a hedge against delisting risks.

Some have decided to delist their stocks from US stock exchanges.

The company “eHi” was established in 2006, offering car rental and chauffeur services in China. It operates in over 500 cities with more than 80,000 vehicles, according to its website. The company raised $120 million in an initial public offering in the United States in November 2014. (Bloomberg)