Ehi Car Services Ltd (ADR) (NYSE:EHIC) has a Big Announcement

Ehi Car Services Ltd (ADR) (NYSE:EHIC) is one of the top car rental providers in China, in terms of market share prices, according to Frost and Sullivan. Since their inception (January 2006), they focus on in investing in up to date technology, which provide them the edge in the industry. This, in addition to their large geographic coverage, name, excellent business model and efficient fleet management, lays a solid foundation for a long standing successful business and that provides an advantage over the competition.

The headquarters of Ehi Car Services Ltd (ADR) (NYSE:EHIC) is based in Shanghai and they offer car services to their corporate and individuals clients, as well as automobile rentals that offer a variety of different types of vehicles.

In the previous eight years, since their establishment, Ehi Car Services Ltd (ADR) (NYSE:EHIC), has had steady and rapid growth and they are service for choice for many Fortune 500 companies that have operations based in China. As of early July 2014, there are more than 32,000 corporate clients that use car services and over 550,000 members that are registered for vehicle rentals.

Currently, the company operates out of 760 locations from 90 different cities all across China. In less than two years, the period between January 2012 and June 2014, the size of the fleet increased from 7,717 to 15,409 vehicles.

eHi Car Services Ltd. (NYSE: EHIC) announced IPO (Initial Public Offering) of 10 million ADS (American Depositary Shares) that entered the market earlier today. Each share, originally priced at $12, will represent two Class A common shares of eHi Car Services Ltd. (NYSE: EHIC).

Goldman Sachs, Deutsch Bank and J.P. Morgan are the underwriters for this offer. They have been granted a 30-day over allotment option to be able to purchase an additional 1.5 million share directly from the company.

A recent press release stated that the company expects to get about $120 million in gross proceeds if the underwriters choose not to exercise their option to acquire additional shares.

Although Goldman Sachs has been a long time investor with a keen interest in eHi Car Services Ltd. (NYSE: EHIC) from the beginning, previous investors included CDH Investments, New Access capital, Qiming Venture Partners and Jafco Ventures.

During the fiscal year of 2013, the annual net revenue increased to over $91 million which is almost a 26% growth.

Earlier this year, eHi Car Services Ltd. (NYSE: EHIC), the largest operators of car rental in China, entered a partnership with Anji Logistics and Shanghai Automotive Industry Corporate Group. There will be a joint collaboration in the areas of new logistic services as well as other automobile opportunities.

As mentioned earlier, Ehi Car Services Ltd (ADR) (NYSE:EHIC) opened the stock market today at $12 per share and currently, at 11:06 a.m. Eastern Standard Daylight Time, it is holding at 411.70 per share. The 52 week range is between 10.95 and 12.50. They have a mkt cap of 665.37M with currently no institutional ownership.