Chinese car rental firm eHi Car Services Ltd. is considering its return to public markets via a $1-billion maiden offering in Hong Kong, Bloomberg reported.
- Sources close to the matter said the firm is eyeing a $5-billion valuation through the potential initial public offering, which could take place in 2022. Discussions are ongoing with advisers, but talks are still preliminary.
- The IPO will mark the return of eHi Car in public markets after a consortium led by Chairman, and Chief Executive Officer Ray Zhang took the firm private after buying out shareholders for $938 million in 2019.
- The firm posted $946 million in sales and a $7-million net loss in 2020, versus the $884 million sales and $15-million net loss incurred the previous year. It ended 2020 with operations in 469 cities with 69,011 vehicles in its fleet.
eHi is looking to position itself against firms such as Localiza Rent a Car SA in Brazil. RENT3 is down 1.27%.