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

Safety Tech: Crash Avoidance or Sensory Overload?

As advanced safety technologies become even more pervasive on mainstream vehicles, are we creating “stupid drivers?"

Own the Fleet, Own the Future

In the dialogue surrounding new transportation paradigms, fleets have been off the public radar until recently. Here’s what’s going on, and a way for you to participate in the conversation.

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Job Finder: Access Top Talent. Fill Key Positions.

>