Super-Large Deal on China’s self-driving vehicle startup WeRide seeks US IPO at $5B valuation
WeRide, a Chinese autonomous vehicle startup, plans a U.S. IPO valued at up to $5.02 billion, prompted by China’s eased restrictions on foreign IPOs. The company seeks to raise $96 million, potentially increased to $111.3 million if underwriters exercise options. Investors have committed to a $320.5 million private placement. WeRide’s IPO, the largest by a Chinese firm in the U.S. since May 2023, aims to boost competitiveness and market presence through R&D and commercialization.
WeRide, a Chinese autonomous vehicle startup, is preparing for a U.S. IPO with a potential valuation of up to $5.02 billion, marking its entry into the public market over a year after China began easing restrictions on foreign IPOs. The company plans to raise approximately $96 million through the IPO, with the possibility of increasing that to $111.3 million if underwriters fully exercise their over-allotment option, based on an IPO price of $17 per American Depository Share (ADS). The offering consists of 6.45 million ADSs priced between $15.50 and $18.50 each, potentially bringing the total raised to $119.4 million.
Additionally, certain investors have committed to purchasing $320.5 million worth of shares in a concurrent private placement. Notably, Alliance Ventures, the investment arm of the Renault Nissan Mitsubishi Alliance, has agreed to buy $97 million in shares. Other investors include JSC International Investment Fund, Get Ride, and Beijing Minghong, according to regulatory filings.
This filing follows Bloomberg’s report that WeRide aims to raise up to $400 million through its IPO and private placement, with $100 million from the IPO and $200 million to $300 million from the private placement.
If WeRide successfully lists on the U.S. stock market, it would be the largest IPO by a Chinese company in the U.S. since Zeekr, a luxury EV startup owned by Geely, went public on the New York Stock Exchange in May. Zeekr’s stock has since dropped 48% post-IPO.
WeRide initially filed confidentially for a U.S. public offering in March 2023. According to PitchBook, the company has raised $1.39 billion at a valuation of $5.11 billion but hasn’t secured any private funding since 2022, as investors have grown cautious about autonomous vehicle companies with uncertain paths to profitability. To scale and remain competitive, WeRide sees accessing public markets as essential.
The company currently holds permits to operate autonomous vehicles in China, the UAE, Singapore, and California, where it is testing in San Jose. Beyond its robotaxi services, WeRide is developing a range of autonomous vehicles, including robobuses, robovans for goods delivery, and robosweepers. The company also offers advanced driver assistance systems (ADAS) with plans to sell them to original equipment manufacturers (OEMs).
WeRide reported $20.7 million in revenue for the first half of 2024, down from $25.5 million during the same period in 2023. The company also reported a loss of $121.3 million for the first six months of 2024, compared to a $100.9 million loss in the first half of 2023. According to its filing, WeRide intends to allocate 35% of the IPO proceeds to R&D, 30% to the commercialization and operation of its autonomous fleets and marketing efforts, 25% to capital expenditures such as purchasing test vehicles, and 10% to general corporate purposes.
WeRide is not alone in seeking a U.S. market debut; its competitor Pony.ai is reportedly also planning another attempt at a U.S. IPO after previous efforts were stalled in 2021. Pony.ai had aimed for a $12 billion valuation through a SPAC merger but paused due to concerns about potential regulatory crackdowns from Beijing on Chinese firms listing on foreign exchanges.
This article has been updated to reflect WeRide’s estimated valuation, fundraising targets, and details about its private placement investments. The original version was published on August 9 at 10:15 am PT.
