In a significant move for the autonomous vehicle industry, Chinese self-driving company WeRide Inc. has successfully raised $440.5 million through its long-awaited US initial public offering (IPO) and a concurrent private placement. This marks a pivotal moment for the Guangzhou-based company, which has been navigating delays in its journey to go public.
Initially, WeRide aimed to sell 6.45 million American depositary shares (ADS) priced between $15.50 and $18.50 each. Ultimately, the IPO was priced at the lower end of that range at $15.50 per share, but demand led to a 20% increase in the offering, generating a total of $120 million.
In addition to the IPO, a group of investors agreed to purchase $320.5 million worth of ordinary shares through private placements, as detailed in WeRide’s filings with the US Securities and Exchange Commission. Notably, Alliance Ventures, the venture capital arm of the Renault-Nissan-Mitsubishi Alliance, plans to invest $97 million, further solidifying its support for WeRide.
Despite the excitement, WeRide has faced a challenging path to this public listing. The company briefly paused its listing plans in mid-August to accommodate a new investor and encountered additional delays while finalizing documentation for US regulators. Recently, approval from Chinese securities regulators for a US listing was renewed, paving the way for this successful offering.
Auto parts giant Robert Bosch GmbH also expressed interest, agreeing to buy up to $100 million worth of ADS at the IPO price. However, this could reduce the number of ADS available for public sale, as each ADS represents three ordinary shares.
This IPO is particularly noteworthy given the backdrop of increased scrutiny on Chinese companies in the US market, especially after the tumultuous listing of Didi Global Inc. in 2021. WeRide’s offering is one of the largest by a Chinese firm in the US since then, with the largest this year being Zeekr Intelligent Technology Holding Ltd.’s $441 million debut in May.
Founded in 2017, WeRide has made significant strides in developing autonomous driving technology, operating in 30 cities across seven countries. Its robotaxi fleet primarily utilizes vehicles sourced from Nissan Motor Co. However, the IPO arrives amid proposed regulations by the Biden administration aimed at blocking the import and sale of Chinese and Russian hardware and software for connected vehicles—raising questions about future operations.
As WeRide prepares to list on the Nasdaq under the symbol WRD, the company’s journey reflects both the challenges and opportunities within the rapidly evolving autonomous vehicle landscape. This successful IPO signals a robust interest in self-driving technology and sets the stage for WeRide to expand its reach in the global market.
Stay tuned as WeRide takes its next steps in reshaping the future of transportation!
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