China Auto Rental Inc, the country’s largest auto rental firm, launched on Friday an initial public offering of up to $468 million, aiming to raise funds to further grow its fleet and pay some debt, said a source with direct knowledge of the plan.
The company, which is supported in its strive by equity firm Warburg Pincus and Hertz Global Holdings Inc, cited details from a term sheet that the firm is offering 426 million new shares. The source, who was not authorized to speak publicly on the IPO plans, said that the shares are offered with an indicative range of HK$7.50 to HK$8.50 each (1 US dollar=7.7498 Hong Kong dollar), making the whole deal’s worth close to HK$3.62billion.
According to its draft IPO filling, China Auto Rental is planning to use 70% of the IPO proceeds to expand its fleet as it will further acquire 45,000 to 60,000 vehicles, adding to the 55,000 cars it already had at the end of March. China Auto also stated that 20% of the funds will be used to pay down loans, while 10% will pass for working capital. Credit Suisse and Morgan Stanley were hired as joint sponsors of the initial public offering, with China International Capital Corp as a joint global coordinator.
By Gabriela Florea
by Aurel Niculescu
) - Friday, September 5th, 2014 - filed under Industry
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