China Auto Rental Withdraws Application for $138 Million IPO

According to Reuters, China Auto Rental lifted its application to hold an initial public offering in the U.S. The move would have been the first time a Chinese company would list in New York since U.S. regulators tightened rules for foreign applicants.

The company originally planned to raise $158.1 million to expand its fleet and pay off debt, but reduced the sum to $138 million before cancelling it altogether.

Yao Junhong, executive vice president of China Auto Rental, said the company feared a weak IPO would hinder its future ability to raise funds since the environment for stocks in the U.S. for China is not well at the moment. Over the past two years, dozens of Chinese companies listed in the U.S. have been accused of fraud.

The full article from Reuters.com can be found at this URL:
http://www.reuters.com/article/2012/05/24/chinaautorental-idUSL4E8GO7ZL20120524

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.