Chinese self-driving start-up WeRide has filed for an initial public offering (IPO) on Nasdaq, aiming to raise up to US$119.4 million, according to a term sheet released on Wednesday. Alongside the IPO, the company also plans a private placement to raise an additional US$320.5 million, marking a significant move in its growth trajectory.
WeRide, based in Guangzhou, will offer 6.5 million American depositary shares (ADS) priced between US$15.5 and US$18.5 each. This could bring in as much as US$119.4 million from the public offering. In the concurrent private placement, the company expects to raise approximately US$320.5 million, pushing the total capital raised from this initiative to over US$440 million.
The start-up, which has been at the forefront of autonomous driving technology in China, previously announced in August its target valuation of up to US$5.02 billion through the IPO. This comes at a time when regulatory challenges loom, as the Biden administration considers proposals to restrict Chinese software in autonomous vehicles operating in the United States.
WeRide’s journey began in 2017 when it was founded in Silicon Valley. The company later incorporated in the Cayman Islands and launched its first robotaxi service in Guangzhou in 2019. With its cutting-edge autonomous driving technology, the company has attracted considerable attention, making this upcoming Nasdaq listing one of the most closely watched Chinese IPOs of the year.
The firm received approval from China’s securities regulator last year to pursue a US listing. WeRide’s IPO is notable, as Chinese IPOs in the US have slowed down significantly following the 2022 delisting of ride-hailing giant Didi Global, which faced regulatory pressure from Chinese authorities.
If successful, WeRide’s IPO will be one of the largest US listings by a Chinese company since Didi’s exit and will mark a resurgence of interest in Chinese firms listing on American exchanges. It would also be the second major Chinese company to pursue a US listing this year, following the May debut of electric vehicle maker Zeekr on the New York Stock Exchange.
WeRide’s IPO is being viewed as a key test for the revival of Chinese listings in the US market, which had dried up due to geopolitical tensions and regulatory scrutiny. Investors are keen to see if this move signals a broader trend of Chinese tech companies seeking capital in the US once again.
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