Hendren Group is advising clients as to China Auto Rental Holdings Inc. as the largest of China’s car rental company’s plans to go public.
Hendren Group is a financial management and investment company dealing with investment methods and strategies. Based in Tokyo boasting a large base of private clients and a well skilled team of advisors, they conduct research and then subsequently develop short and long-term systematic approaches to achieving optimum returns on investments for themselves, their associates and for their current client base.
China Auto Rental has confirmed its intentions for the possible floating of the company’s shares on the Hong Kong Stock Exchange within the near future. The car rental agency is China’s largest and is believed to be viewing the move as a capital-raising venture to aid its continuing expansion in the market place. Car rentals in the People’s Republic of China are already out strip those of France the largest such market in Europe.
Hendren Group Senior Vice President of Mergers and Acquisitions, David Holmes said, “The initial public offering from China Auto Rental will attract a lot of investor interest as it will be the first opportunity to benefit from the massive car rental market within the country, the company itself is already prominently placed and would most assuredly seek to capitalize as additional funding becomes available, this is a company that has the potential to expand rapidly once the funds are in place.”
With the car rental market in China a $4 billion a year business, many analysts are forecasting growth of 17 percent annually over the coming years helped in part by China’s governmental policies in regards to taxis and private vehicle legislation. China Auto Rental operates 700 outlets across 66 Tier-1 and 2 cities in the country with 52 major airports under its banner. The company this year stated its intention to double its existing fleet of 55’000 cars within the next few years.
Presently the Chinese company major shareholders in its business include the parent of Lenovo Inc. with a 41 percent holding and as of April this year as reported earlier Hertz Global Holdings Inc. with a 20 percent stake. Many analysts expect Hertz to further increase its investment during the IPO. China Auto’s figures show that it expects to see revenues increase this year by 50 percent to around $410 million annually.
Hendren Group Senior Vice President David Holmes concluded, “At this early stage our clients are only benefiting through their investment in the company’s major share holdings and we are advising them accordingly. Once a firm decision is made with regard to the IPO, we will of course be adjusting our strategy to best suit this opportunity on behalf of not just existing participants but as a new entity investment. We look forward to commenting on this situation as new developments come to light.”
Hendren Group is set to continue to advise clients to acquire shares within the Asian markets adding to successful diversified portfolios.