(Bloomberg) -- EHang, one of China's largest drone makers, has made a confidential application for an initial public offering with Nasdaq Inc., according to people with knowledge of the matter.
EHang plans to float 10% to 15% of its shares, with the company's valuation not yet set due to volatile market conditions, said one of the people, who asked not to be identified because the plans aren't public. EHang may raise as much as $200 million in the IPO, one of the people said.
Deliberations are ongoing and details of the offering including timeline and fundraising size could still change, the people said. Credit Suisse Group AG and Morgan Stanley are working on the deal, the people said.
Representatives for EHang and Nasdaq declined to comment on the technology startup's share-sale plans. Morgan Stanley and Credit Suisse didn't immediately respond to requests for comment.
Founded in 2014, Guangzhou-based EHang specializes in drones used for aerial photography and other commercial applications. The company has a partnership with DHL-Sinotrans International Air Courier Ltd. to tackle last-mile delivery in China, and is working with grocery chain Yonghui Superstores Co. to use drones for food delivery.
In January, EHang was authorized by the Civil Aviation Administration of China as the first company to test autonomous aerial passenger vehicles, and is trying out low-altitude drones to shuttle passengers in Guangzhou. The startup is working with Austrian partner FACC AG to produce hundreds of passenger drones by the end of next year that could be the world's first such aircraft.
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In consumer drones, EHang is dwarfed by fellow Chinese manufacturer SZ DJI Technology Co., the world's largest maker of nonmilitary drones. DJI also is reportedly seeking to go public.
To contact Bloomberg News staff for this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Julia Fioretti in Hong Kong at jfioretti4@bloomberg.net;Evelyn Yu in Shanghai at yyu263@bloomberg.net
To contact the editors responsible for this story: Candice Zachariahs at czachariahs2@bloomberg.net, Daniel Taub, Katrina Nicholas
©2019 Bloomberg L.P.
With assistance from Bloomberg
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