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China Auto Rental IPO hits the brakes after slow investor take-up

25 Apr 2012

Legend Holdings-backed China Auto Rental has scrapped its planned US IPO after it was unable to attract enough investors.

The company has blamed “capital market conditions” for the failure to launch its listing on the Nasdaq exchange, which was targeting $137.5m.

It will now have to find another way to expand its 32,000 strong vehicle fleet and pay down some of its debt, as it had hoped to do following the IPO.

Owner Legend is the parent company of China-based private equity fund Hony Capital and the owner of computer manufacturing giant Lenovo.

China Auto’s planned price range would have seen it achieve a valuation between ten and 12 times its earnings, with 11 million shares offered at between $10.50 and $12.50.

Last October Legend’s venture capital arm led a $30m Series B financing round for global social gaming developer Happy Elements.

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