China’s WeRide Raises $440.5 million in US IPO and private placement
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On October 25, 2024, Chinese autonomous driving pioneer WeRide made its Nasdaq debut under the ticker “WRD,” raising $440.5 million through a mix of public and private funding. The IPO is part of a recent wave of Chinese companies tapping into U.S. capital markets as regulatory tensions ease and investor appetite for tech stocks rekindles.
China’s WeRide raises $440.5 million in US IPO and private placement WeRide, a leader in autonomous vehicles (AV), secured $120 million by selling 7.74 million American depositary shares (ADS) at $15.50 per share, hitting the lower end of its targeted range and bringing the company’s valuation above $4 billion. An additional $320.5 million came from a private placement, further bolstering its war chest. Should underwriters exercise their option for additional shares, total proceeds could reach $458.5 million.
The listing marks a turning point for Chinese companies after years of reduced U.S. IPO activity. This decline followed ride-hailing giant Didi Global’s forced delisting amid Chinese regulatory backlash. With Beijing loosening restrictions and resolving a long-standing audit dispute with U.S. authorities, firms like WeRide are finding renewed opportunities to list in the U.S.
WeRide’s IPO reflects growing confidence in the AV sector, despite challenges. As a leader in autonomous taxis, vans, and buses, WeRide is actively testing in over 30 cities across seven countries, though hurdles remain. Incidents involving AVs and issues in navigating complex driving conditions continue to pose risks to widespread adoption. Meanwhile, the Biden administration’s proposed rule against Chinese tech in U.S. AVs introduces further complexity to WeRide’s expansion goals.
The listing underscores rising optimism around autonomous driving, even as analysts acknowledge the industry’s long road to scalability and safety. With support from key underwriters like Morgan Stanley, J.P. Morgan, and China International Capital Corp, WeRide’s Nasdaq debut is poised to inspire further entries, signaling a potential shift in global AV innovation and competition.
China’s WeRide raises $440.5 million in US IPO and private placement WeRide, a leader in autonomous vehicles (AV), secured $120 million by selling 7.74 million American depositary shares (ADS) at $15.50 per share, hitting the lower end of its targeted range and bringing the company’s valuation above $4 billion. An additional $320.5 million came from a private placement, further bolstering its war chest. Should underwriters exercise their option for additional shares, total proceeds could reach $458.5 million.
The listing marks a turning point for Chinese companies after years of reduced U.S. IPO activity. This decline followed ride-hailing giant Didi Global’s forced delisting amid Chinese regulatory backlash. With Beijing loosening restrictions and resolving a long-standing audit dispute with U.S. authorities, firms like WeRide are finding renewed opportunities to list in the U.S.
WeRide’s IPO reflects growing confidence in the AV sector, despite challenges. As a leader in autonomous taxis, vans, and buses, WeRide is actively testing in over 30 cities across seven countries, though hurdles remain. Incidents involving AVs and issues in navigating complex driving conditions continue to pose risks to widespread adoption. Meanwhile, the Biden administration’s proposed rule against Chinese tech in U.S. AVs introduces further complexity to WeRide’s expansion goals.
The listing underscores rising optimism around autonomous driving, even as analysts acknowledge the industry’s long road to scalability and safety. With support from key underwriters like Morgan Stanley, J.P. Morgan, and China International Capital Corp, WeRide’s Nasdaq debut is poised to inspire further entries, signaling a potential shift in global AV innovation and competition.