SELF-DRIVING car company WeRide notched a valuation of about US$4.2 billion, after raising US$120 million in its US initial public offering (IPO) on Friday (Oct 25), becoming the latest Chinese company to capitalise on easing regulatory hurdles to list in New York.
The company sold 7.7 million American depositary shares (ADS) in the offering at US$15.50 apiece, the lower end of its targeted range of US$15.50 to US$18.50 per ADS.
It also raised around US$320.5 million in a concurrent private placement.
WeRide expects to raise a total of US$458.5 million from both the IPO and the private placement.
The Chinese firm, known for autonomous taxis, vans, buses and street sweepers, has been testing and conducting commercial pilots in 30 cities across seven countries.
The company will start trading on the Nasdaq.
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Self-driving technology has been in the experimental stages globally, with robotaxi companies facing significant technical and regulatory challenges. Even so, China has been more proactive in approving trials compared to the US.
The IPO follows the debut of Chinese electric-vehicle maker Zeekr on the New York Stock Exchange earlier this year, and comes at a critical moment for the market as it attempts to stage a meaningful rebound in 2024.
The number of Chinese companies that have pursued stock market flotations in the US in the past few years has dropped, after ride-hailing giant Didi Global was forced to delist its shares following a backlash from Chinese regulators.
Beijing has since softened its stance and released a set of rules last year to revive such listings, after the US accounting watchdog and China resolved a longstanding audit dispute in December 2022.
Another autonomous driving company Pony.ai, backed by carmaker Toyota and with operations in China, filed for an IPO in the US earlier this month.
Morgan Stanley, JPMorgan Chase and China International Capital were the lead underwriters of WeRide’s IPO. REUTERS
