EHang, a Developer of Self-Flying Aircrafts, Files for $100 Million IPO

The Chinese developer of self-flying vehicles has made the world’s first delivery of a passenger-grade AAV last year and has since run tests with passengers. Now, it seeks a U.S. listing.

Yaning Ying
    Nov 05, 2019 6:00 PM  PT
EHang, a Developer of Self-Flying Aircrafts, Files for $100 Million IPO
author: Yaning Ying   

EHang Holdings Ltd., a Chinese autonomous air mobility company, seeks to raise up to $100 million in an initial public offering in New York.

The Guangzhou, China-based company established in 2014, develops, markets and sells autonomous aerial vehicles (AAVs). It also provides commercial solutions for various industries and applications, including passenger transportation, logistics, smart city management and aerial media. 

EHang said its mission is "to make safe, autonomous and eco-friendly air mobility accessible to everyone."

For 2018 and the six months ended June 30, 2019, EHang reported revenue of $9.7 million and $4.7 million, respectively. Net loss was $11.7 million and $5.5 million for the respective time periods. In the first half of 2019, revenues generated from its core business - air mobility solutions, increased to $3.5 million, representing 73.7% of total revenues, according to the filing.

Unmanned aerial vehicle (UAV) is an aircraft without a human pilot aboard. According to Frost & Sullivan, the global commercial UAV market was $3.7 billion in 2018 and is expected to grow to $103.7 billion in 2023, representing a compound annual growth rate (CAGR) of 95%. 

EHang said it has forged strategic partnerships with DHL, Vodafone GmbH and FACC to jointly develop and commercialize urban air mobility solutions.

The company said its operating results depend in part on the acceptance of and demand for its passenger-grade AAVs and air mobility solutions. In January 2016, EHang unveiled the world's first passenger-grade AAV, EHang 184, a single-seat model, at Consumer Electronics Show (CES). 

According to market analysis firm Frost & Sullivan, EHang made the world's first delivery of a passenger-grade AAV in 2018. As of the date of this prospectus, the company has delivered 38 passenger-grade AAVs for testing, training and demonstration purposes and 28 unfilled purchase orders of passenger-grade AAVs.

EHang said it aims to apply to list its American depository shares on the Nasdaq Global Market under the symbol "EH." The exact amount of the offering, as well as the pricing and number of shares, have yet to be determined.

Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC are acting as the underwriters on the deal. Co-managing the offering are Needham & Company LLC and Tiger Brokers (NZ) Ltd.