China's EHi car rental service plans IPO
EHi Car Rental, a vehicle-sharing network in China part-owned by Goldman Sachs Group Inc., has hired Deutsche Bank AG and Barclays PLC for its U.S. initial public offering, said two people with knowledge of the plan.
The company, based in Shanghai, also chose Goldman Sachs to work on its IPO, which may raise $150 million (944 million yuan), said sources who declined to be identified. The sale could occur as early as this year, they said.
EHi, founded in 2006, offers service in more than 50 Chinese cities, allowing people to drive themselves or take advantage of chauffeuring, according to its website. The company compares itself on the site to Zipcar Inc., the U.S. car-sharing service that completed an IPO last year. Zipcar, based in Cambridge, Mass., has dropped 14 percent since its share sale.
Goldman Sachs agreed in 2010 to lead an investment of $70 million in EHi, alongside Qiming Venture Partners, CDH Ventures, Ignition Capital, JAFCO Asia and New Access Capital, according to a statement from EHi at the time.
EHi's spokesman in Shanghai didn't immediately return a call seeking comment. Spokesmen for Goldman Sachs, Deutsche Bank and Barclays declined to comment.
