Chinese Robotaxi Firm WeRide Aims for Up to $5 Billion Valuation in US IPO, Reports Reuters

WeRide, an autonomous driving startup based in China, has announced plans for an initial public offering (IPO) in the United States, aiming for a valuation of up to $5.02 billion. This announcement comes as the Biden administration is expected to consider restricting Chinese software in self-driving vehicles in the near future.

The technology underlying autonomous driving continues to be in experimental phases, with robotaxi companies facing various technical and regulatory challenges. However, China has been proactive in facilitating trials, showing faster progress compared to its U.S. counterparts.

WeRide is well-known for its autonomous services, including taxis, vans, buses, and street sweepers. The company intends to raise up to $119.4 million in its IPO by offering 6.45 million American depositary shares, with a price range set between $15.50 and $18.50 per share.

In addition, select investors have committed to purchasing shares valued at $320.5 million in WeRide through a concurrent private placement, contingent upon the successful completion of the IPO. Among these investors are Alliance Ventures BV, which is associated with the Renault-Nissan-Mitsubishi Alliance, and the JSC International Investment Fund SPC. Additionally, Robert Bosch GmbH, a German automotive supplier, has expressed interest in acquiring up to $100 million in shares during the IPO.

Founded in 2017, WeRide is actively developing autonomous driving technologies and is conducting tests and commercial pilots across 30 cities in seven countries. If successful, this would mark the second significant IPO of a China-based company in the U.S. this year, following electric vehicle maker Zeekr, which debuted on the New York Stock Exchange in May.

The landscape for Chinese IPOs in the U.S. had mostly slowed in recent years, especially after the ride-hailing giant Didi Global was forced to delist in 2022 due to regulatory pressures in China.

For the first half of the year ending June 30, WeRide reported a net loss of approximately 881.7 million yuan (around $123.04 million), compared to a loss of 723.1 million yuan during the same period the previous year. The company generated revenue of 150.3 million yuan, a decrease from 182.9 million yuan a year earlier.

WeRide plans to list on the Nasdaq under the ticker symbol “WRD.” Morgan Stanley, J.P. Morgan, and China International Capital Corp are serving as the lead underwriters for this IPO.