China-based autonomous driving startup WeRide announced on Friday its intention to seek a valuation of up to $5.02 billion in its upcoming initial public offering (IPO) in the United States. The company plans to raise up to $119.4 million by offering 6.45 million American depositary shares at a price range of $15.50 to $18.50 per share.
The IPO comes at a time when the Biden administration is expected to propose new regulations that could potentially restrict the use of Chinese software in autonomous vehicles in the U.S. This regulatory uncertainty adds to the challenges facing self-driving technology, which continues to grapple with technical and legal hurdles. In contrast, China has actively supported trials for autonomous vehicles, accelerating the development and deployment of such technologies.
WeRide, which specializes in autonomous taxis, vans, buses, and street sweepers, has attracted significant interest from investors. Alliance Ventures BV, the venture capital fund of the Renault-Nissan-Mitsubishi Alliance, and JSC International Investment Fund SPC have committed to a concurrent private placement worth $320.5 million, contingent on the successful completion of the IPO. German automotive supplier Robert Bosch GmbH has also expressed interest in purchasing up to $100 million in shares.
Founded in 2017, WeRide operates in 30 cities across seven countries and is conducting commercial pilots and tests of its autonomous driving technologies. Despite its expansion, the company reported a net loss of 881.7 million Chinese yuan ($123.04 million) for the six months ending June 30, up from 723.1 million yuan a year earlier. Revenue for the same period decreased to 150.3 million yuan from 182.9 million yuan.
If successful, WeRide’s IPO will be the second major China-based listing in the U.S. this year, following Zeekr’s debut on the New York Stock Exchange in May, which has since seen its shares trade 35.6% below the initial offer price. WeRide plans to list on the Nasdaq under the symbol “WRD,” with Morgan Stanley, J.P. Morgan, and China International Capital Corp serving as lead underwriters for the offering.
WeRide’s IPO could mark a significant moment for Chinese companies seeking U.S. listings, as the market for such offerings had largely stalled following the delisting of ride-hailing giant Didi Global in 2022 amid regulatory issues.
