Guangzhou-Based Commercial Drone Maker EHang Files for Nasdaq IPO

EHang, one of China’s largest drone makers, has made an application for an initial public offering (IPO) with Nasdaq. The Guangzhou-based company plans to float 10-15% of its shares, with the company’s valuation not yet set. Credit Suisse Group and Morgan Stanley are the main bookrunners of this deal. The IPO is aimed to raise US$100m as an initial placeholder amount. Founded in 2014, EHang specialises in drones used for aerial photography and other commercial applications. The core aim is to launch a passenger-grade autonomous aerial vehicle. The company has a partnership with DHL-Sinotrans International Air Courier to tackle last-mile delivery in China and is working with grocery chain Yonghui Superstores to use drones for food delivery. In January 2019, EHang was authorised by the Civil Aviation Administration of China as the first company to test autonomous aerial passenger vehicles. Currently they are trying out low-altitude drones to shuttle passengers in Guangzhou.