WeRide, a Chinese autonomous vehicle (AV) startup, is actively preparing for its debut on the U.S. stock market. The company has filed with the Securities and Exchange Commission (SEC) to register 1 billion American Depository Receipts (ADRs) at a maximum price of $0.05 per share, which totals $50 million. ADRs are a financial instrument representing shares in foreign companies and are traded on U.S. exchanges, signaling that WeRide is moving forward with its U.S. initial public offering (IPO).
This filing follows reports that WeRide is seeking to raise up to $400 million through its IPO and a private placement, with approximately $100 million expected from the IPO and an additional $200 million to $300 million from the private placement. This suggests that the current $50 million ADRs may represent only a portion of the IPO, with the potential for more shares to be issued at a later date.
If WeRide successfully goes public, it will mark the most significant IPO by a Chinese company on a U.S. exchange since Zeekr, a luxury electric vehicle (EV) startup owned by Geely, went public on the New York Stock Exchange in May. However, Zeekr’s stock has faced challenges, dropping 48% since its debut.
WeRide initially filed confidentially to go public in March 2023. The company has raised $1.39 billion, achieving a valuation of $5.11 billion, according to PitchBook data. Despite its valuation, WeRide has not raised a private funding round since 2022. The broader venture capital market has shown reduced enthusiasm for AV companies due to the long and uncertain path to profitability in this sector.
WeRide holds various permits to operate autonomously in China, the United Arab Emirates, Singapore, and California. The company is also testing its vehicles in San Jose, California. WeRide’s product lineup includes a robotaxi service, a driverless robobus, a robovan for goods delivery, and a robosweeper. Additionally, the company offers advanced driver assistance systems (ADAS) and plans to sell them to original equipment manufacturers (OEMs).
Despite its ambitions, WeRide has faced financial challenges. The company’s revenue for the first half of 2024 was $20.7 million, down from $25.5 million during the same period in 2023. The company reported a loss of $121.3 million for the first half of 2024, an increase from the $100.9 million loss reported in the first half of 2023.
WeRide is not alone in pursuing a U.S. IPO. Pony.ai, one of its main competitors, is also reportedly preparing to go public in the U.S. after its previous attempt in 2021 was delayed due to concerns about potential regulatory crackdowns from Beijing.
Featured Image courtesy of Bloomberg
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