China Auto Rental Holding Inc. (NASDAQ: CARH) is a car rental company. The Company operates car rental agencies throughout China that short-term rentals, long-term rentals and leasing of a wide range of automobiles. As a leading car rental company in China, it expects to offer 11 million American Depositary Shares (ADS) at a price between $10.50 and $12.50.CARH will land on NASDAQ on April 25th by estimated.
The company estimates that it will receive net proceeds of approximately US$112.5 million from this offering after deducting the underwriting discounts, commissions and estimated offering expenses. China Auto Rental plans to spend US$90.0 million received from this offering for vehicle acquisition to further expand their rental fleet.
The prospectus indicates that,China Auto Rental Holding Inc. owns 9 subsidiary companies,6 of them is mergered,total cost 85M CNY. lost of last three years :3.2M CNY,43.3M CNY,117.6M CNY.So the raised fund by this IPO will pay back the debt on priority.