WeRide, an autonomous driving technology company, has filed for an initial public offering (IPO) on the Nasdaq stock market, reports Bloomberg.
This move could represent the largest US flotation of a Chinese company since the problematic listing of Didi Chuxing in 2021.
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In a filing, WeRide said it may face “various legal and operational risks and uncertainties associated with being based in or having our operations primarily in mainland China.”
WeRide, valued at $5.1bn (37bn yuan) following its D+ funding round in 2022, is the only company in its sector holding autonomous driving permits in mainland China, the US, the United Arab Emirates, and Singapore, according to South China Morning Post.
The Cayman Islands-based holding company, with primary operations through Guangzhou Wenyuan Zhixing Technology and its subsidiaries in mainland China, is yet to disclose the amount it intends to raise through the Nasdaq listing.
Currently, the company is actively running trials and commercial operations in 30 cities across seven countries.
Established in 2017, WeRide claims to be the sole provider of commercial L2 to L4 autonomous driving services in urban areas.
In China, the majority of advanced vehicles are categorised as L2 or L2+, which require the driver to remain attentive and prepared to assume control at any moment.
According to standards body SAE International, L3 vehicles do not need the driver to keep their hands on the steering wheel and permit them to divert their attention from the road under certain traffic conditions.
L4 vehicles generally do not need human intervention in most situations, though the driver still has the option to manually take control if desired.
According to an earlier Bloomberg report, WeRide aimed to raise up to $500m from its IPO, potentially making it the most significant US listing by a Chinese company since Didi Global’s $4.4bn debut in New York.
However, Didi’s experience serves as a cautionary tale, with a cybersecurity review launched by Chinese authorities leading to a hefty fine and delisting.
In its filing with the US Securities and Exchange Commission, WeRide disclosed a loss of $268m on revenue of $55m in the previous year.
The Renault-Nissan-Mitsubishi Alliance, a current investor, has shown confidence by agreeing to purchase shares in the IPO via a private placement.
Morgan Stanley, JPMorgan Chase & Co., and China International Capital Corp are leading the offering, with plans for WeRide’s American depositary shares to be traded under the symbol WRD.
