Chinese robotaxi firm WeRide seeks $5 billion valuation in US IPO

WeRide IPO: China-based autonomous vehicle company WeRide has announced plans for an initial public offering (IPO) in the United States, aiming for a valuation of up to $5.02 billion. The company revealed that it intends to raise $119.4 million by offering 6.45 million American depositary shares, priced between $15.50 and $18.50 per share. The timing of WeRide's IPO is special, as the Biden administration is expected to propose new restrictions on the use of Chinese software in autonomous vehicles shortly. This regulatory delay could impact the autonomous driving sector, which faces ongoing technical and legal challenges.

WeRide was established in 2017, specialises in autonomous driving technology and operates robotaxis, vans, buses, and street sweepers. The company is actively testing and piloting its technologies across 30 cities in seven countries.

In addition to the public offering, WeRide has secured commitments for a simultaneous private placement of shares worth $320.5 million. Prominent investors in this private placement include Alliance Ventures BV, the venture capital arm of the Renault Nissan Mitsubishi Alliance, and JSC International Investment Fund SPC. German automotive supplier Robert Bosch GmbH has also shown interest, showing a willingness to invest up to $100 million in WeRide shares.

WeRide’s financial performance has shown mixed results. The financials have reported a net loss of 881.7 million Chinese yuan ($123.04 million) for the six months ending June 30, an increase from a loss of 723.1 million yuan a year prior. The revenue of WeRide for the same period was 150.3 million yuan, a decrease from 182.9 million yuan the previous year.

The company plans to list on the Nasdaq under the ticker symbol "WRD." Leading the IPO are Morgan Stanley, JP Morgan, and China International Capital Corporation. WeRide's IPO would be the second significant Chinese company to go public in the US this year, following the May debut of electric vehicle maker Zeekr, which has since traded 35.6 per cent below its initial offering price.

(with Reuters inputs)