CHINA-BASED autonomous driving startup WeRide said on Friday (Aug 9) it was seeking a valuation of as much as US$5 billion in its initial public offering (IPO) in the United States.
The IPO announcement comes at a time when the Biden administration is expected to propose barring Chinese software in autonomous vehicles in the US in the coming weeks.
Self-driving technology remains experimental with robotaxi companies facing technical and regulatory hurdles. China, however, has moved aggressively to green-light trials compared to the US.
WeRide, known for autonomous taxis, vans, buses and street sweepers, is aiming to raise as much as US$119.4 million in the IPO by offering 6.45 million American depositary shares at a price range of US$15.50 and US$18.50 per share.
Certain investors have also agreed to purchase shares worth US$320.5 million in WeRide in a concurrent private placement, subject to the IPO’s completion.
Such investors include Alliance Ventures – the venture capital fund of the Renault Nissan Mitsubishi Alliance – and JSC International Investment Fund SPC, among others.
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German automotive supplier Robert Bosch GmbH has indicated an interest in purchasing WeRide shares worth up to US$100 million sold in the IPO.
WeRide, founded in 2017, develops autonomous driving technologies and is testing and conducting commercial pilots in 30 cities across seven countries.
It would be the second major China-based company to seek US listing this year. In May, electric vehicle maker Zeekr debuted on the New York Stock Exchange and is trading 35.6 per cent below its offer price.
Chinese IPOs in the US had dried up in the past couple of years after ride hailing giant Didi Global was forced to delist in 2022 following backlash from Chinese regulators.
WeRide reported a net loss of 881.7 million Chinese yuan (S$163 million) for the six months ended Jun 30, compared with 723.1 million yuan a year earlier.
Revenue was 150.3 million yuan for the period, compared with 182.9 million yuan a year earlier.
WeRide would list on the Nasdaq under the symbol “WRD”.
Morgan Stanley, J.P. Morgan and China International Capital Corp are lead underwriters for the IPO. REUTERS
