WeRide, a Chinese autonomous vehicle startup, is getting ready for its U.S. debut with an initial public offering (IPO) worth up to $5.02 billion. This move comes after China loosened restrictions on foreign IPOs, allowing WeRide to seek a valuation of $5.02 billion.
The company plans to raise around $96 million from its offering, which could increase to $111.3 million if underwriters exercise their over-allotment option fully. WeRide is offering 6.45 million ADSs at a price range of $15.50 to $18.50 per share, potentially raising up to $119.4 million in the IPO. Additionally, certain investors have committed to purchasing shares worth $320.5 million in a concurrent private placement. For example, Alliance Ventures, the venture arm of the Renault Nissan Mitsubishi Alliance, has agreed to buy $97 million worth of shares.
According to sources, WeRide is aiming to raise up to $400 million in total, with $100 million coming from the IPO and $200-300 million from the private placement. This IPO could be the largest by a Chinese company on the U.S. stock market since Zeekr’s debut in May, which saw a 48% drop in stock value since then.
WeRide, which holds permits to operate autonomously in several countries including China, the UAE, Singapore, and California, is actively testing its technology in San Jose. Apart from robotaxi services, the company is developing driverless robobuses, robovans for goods delivery, and robosweepers. WeRide also offers advanced driver assistance systems that it plans to sell to OEMs.
The company reported a revenue of $20.7 million for the first half of 2024, down from $25.5 million in the same period in 2023. However, WeRide also recorded losses of $121.3 million and $100.9 million for the first half of 2024 and 2023, respectively.
WeRide intends to allocate 35% of the IPO proceeds to research and development, 30% to commercialization and operation of autonomous driving fleets, 25% to capital expenditures like purchasing test vehicles, and the remaining 10% for general corporate purposes.
WeRide is not the only Chinese autonomous vehicle company eyeing the U.S. market. Pony.ai, a competitor, is reportedly preparing for a U.S. IPO after previous attempts in 2021 were halted. Pony.ai had planned to go public through a SPAC merger at a $12 billion valuation but paused due to uncertainties from Beijing regarding Chinese firms listing on foreign exchanges.
