In recent years, the number of Chinese firms seeking to list on U.S. stock markets had declined, particularly after the ride-hailing giant Didi Global faced a forced delisting due to regulatory pushback from China.
However, Beijing has recently relaxed its regulatory approach, introducing new guidelines last year aimed at revitalizing such listings, following the resolution of a long-standing audit dispute between U.S. accounting regulators and China in December 2022.
The U.S. IPO market has shown signs of recovery in recent weeks, with investors returning to technology startups that had previously fallen out of favor due to concerns over high cash burn rates and inflated valuations.
WeRide offered 7.74 million American depositary shares at $15.50 each—at the lower end of its anticipated range—raising approximately $120 million. The IPO values the company at over $4 billion.
Additionally, the company secured around $320.5 million through the private placement.
WeRide, which specializes in autonomous vehicles including taxis, vans, buses, and street sweepers, is currently conducting tests and commercial pilots in 30 cities across seven countries.
The total proceeds could reach up to $458.5 million if underwriters opt to purchase additional shares. WeRide is expected to commence trading on the Nasdaq later today.
ROBOTAXI CHALLENGES
Industry analysts and experts indicate that the rollout of robotaxi services may require several more years, primarily due to the necessity for enhanced safety and reliability measures. In contrast, China has been more aggressive in approving trial programs than the United States.
Incidents involving autonomous vehicles, along with the technology's current shortcomings in handling difficult situations—such as adverse weather, intricate intersections, and erratic pedestrian movements—pose considerable challenges.
At the same time, the Biden administration is advocating for a regulation that would ban Chinese software and hardware in connected and autonomous vehicles operating on U.S. roads, citing national security issues.
Companies are optimistic that as the industry evolves, it will revolutionize urban transportation and mobility. In October, electric vehicle manufacturer Tesla unveiled its long-anticipated robotaxi and robovan.
WeRide's initial public offering (IPO) comes on the heels of EV maker Zeekr's successful debut on the New York Stock Exchange earlier this year, marking the first significant IPO of a China-based company since Didi's delisting.
Additionally, Pony AI, another autonomous driving company supported by Toyota and operating in China, submitted its application for a Nasdaq listing earlier this month.
WeRide's IPO is being underwritten by Morgan Stanley, J.P. Morgan, and China International Capital Corp.