TLDR:
- WeRide raised $440.5M total through IPO ($120M) and private placement ($320.5M)
- Company valued at $4.21B, selling shares at $15.50 each (lower end of range)
- Operating in 30 cities across 7 countries with autonomous vehicles
- First major Chinese IPO since regulatory environment improved
- Follows EV maker Zeekr’s NYSE listing, with Pony AI also filing for Nasdaq listing
Chinese autonomous vehicle company WeRide completed its initial public offering (IPO) on the Nasdaq on October 25, 2024, raising a total of $440.5 million through combined public offering and private placement proceeds.
The company sold 7.74 million American depositary shares at $15.50 each, pricing at the lower end of its targeted range. The public offering portion raised $120 million, while a concurrent private placement brought in an additional $320.5 million.
WeRide’s market debut valued the company at $4.21 billion, marking a major milestone for Chinese technology companies seeking to list in the United States. The total proceeds could reach $458.5 million if underwriters exercise their option to purchase additional shares.
The company specializes in developing autonomous vehicles, including self-driving taxis, vans, buses, and street sweepers. WeRide currently operates in 30 cities across seven countries, conducting both testing and commercial pilot programs for its autonomous vehicle fleet.
This IPO represents a turning point in Chinese companies’ return to U.S. markets. The number of Chinese firms listing in America had decreased after ride-hailing company Didi Global was forced to delist following regulatory pressure from Beijing.
The regulatory landscape has improved since then. Beijing softened its stance and introduced new rules in 2023 to encourage such listings, following the resolution of a long-standing audit dispute between U.S. and Chinese authorities in December 2022.
The U.S. IPO market has shown renewed interest in technology startups in recent weeks, despite previous concerns about cash burn and high valuations. WeRide’s successful listing follows the New York Stock Exchange debut of Chinese electric vehicle maker Zeekr earlier in 2024.
The autonomous driving sector faces several practical challenges. Industry experts note that establishing widespread robotaxi services requires additional time to ensure safety and reliability. These challenges include handling difficult weather conditions, complex intersections, and unexpected pedestrian behavior.
The Biden administration has proposed new regulations that would restrict Chinese software and hardware in connected and autonomous vehicles operating on American roads, citing national security concerns.
China has taken a more permissive approach to autonomous vehicle testing compared to the United States, allowing more extensive trials of the technology on public roads.
The timing of WeRide’s market entry coincides with other developments in the autonomous vehicle sector. Tesla recently unveiled its latest robotaxi and robovan designs, while another Chinese autonomous driving company, Pony AI, has filed for its own Nasdaq listing.
Morgan Stanley, J.P. Morgan, and China International Capital Corp served as lead underwriters for the WeRide IPO, managing the complex process of bringing the company to market.
The successful listing occurred during a period of recovery for tech IPOs, as investors show renewed appetite for innovative technology companies after a two-year slowdown.
WeRide’s public offering represents the latest example of improving U.S.-China financial relations, following the earlier resolution of accounting oversight disputes between the two countries.
The IPO provides WeRide with substantial capital to continue developing its autonomous vehicle technology and expand its operations across global markets.
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