China Auto Rental seeks $137.5 million from US IPO

Coming just a few weeks after Vipshop's dismal debut, China Auto Rental decides to cap the size of its Nasdaq IPO by selling only 14.9% of the share capital.

China Auto Rental seeks $137.5 million from US IPO
A batch of cars used at China’s NPC congress last month. Government entities are among the key groups supporting China’s fast-growing car rental market (ImagineChina)

China Auto Rental has kicked off the roadshow for an initial public offering on Nasdaq that will be crucial for establishing whether US investors are interested in buying Chinese newcomers. Recent experiences suggest they may be cautious, especially after a near 30% drop in the share price of Vipshop Holdings which debuted on March 23.

Partly in response to that, China Auto Rental has decided to sell only 14.9% of its share capital through the...

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