Tiger Global joins $134m placement for China's eHi

EHi, which claims to be China's largest provider of car services and second-largest car rental provider, said in a statement that the placement would be made in two tranches. The first, expected to close by May 26, will involve the issuance of 11.4 million common shares at $6 each. In the second issuance, planned within 60 days of the first subject to shareholder approval, the company will issue a further 10.9 million common shares.

In addition, eHi's two largest shareholders, Ctrip and the Crawford Group, will sell a combined 2.7 million common shares to the buyers at the same price. Ctrip and Crawford will remain the largest shareholders following the sale. Crawford is the parent company of Enterprise Rent-A-Car and National Car Rental.

Since its founding in 2006, eHi has grown to include more than 1,200 service centers in over 100 cities in China. The company offers individual car rentals and also partners with businesses that operate in China, with both self-drive and chauffeured car options available.

EHi also invested $25 million in ride-hailing service Kuaidi Dache last year prior to its merger with rival Didi Dache. Its cars are available through the Kuaidi platform.

The company has raised money from a string of venture capital investors, including Goldman Sachs, New Access Capital, Qiming Venture Partners, CDH Investments, Ignition Partners and Jafco Asia before its $120 million IPO last year.

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• Topics
• Greater China
• Consumer
• PIPEs
• China
• Tiger Global Management
• Consumer
• TMT
• PIPE
• automobiles