Summary:
WeRide, a Chinese autonomous vehicle company, is aiming for a $5.02 billion valuation in its US IPO.
The company plans to raise $96 million from the IPO, with a potential additional $111.3 million from underwriters.
WeRide has secured significant investments from various players, including Alliance Ventures and JSC International Investment Fund.
The company's global expansion includes permits to operate autonomously in China, the UAE, and Singapore, with active testing in San Jose, California.
WeRide plans to invest IPO proceeds in R&D, commercialization, capital expenditures, and general corporate purposes.
WeRide's competitor, Pony.ai, is also preparing for a US IPO, highlighting the growing competition in the autonomous vehicle industry.
WeRide: A Chinese Autonomous Vehicle Startup Targets the US Market
WeRide, a Chinese autonomous vehicle company, is making a big move: it's seeking to go public in the US with a valuation of up to $5.02 billion. This comes after China eased its restrictions on foreign IPOs.
WeRide plans to raise around $96 million from its initial public offering (IPO), with a possible additional $111.3 million if its underwriters exercise their over-allotment option. The company is offering 6.45 million American Depository Shares (ADSs) at a price range of $15.50 to $18.50 per share.
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Strategic Investments and Partnerships
The company has secured significant investments from various players, including Alliance Ventures, the venture arm of the Renault Nissan Mitsubishi Alliance, who has pledged to buy $97 million worth of shares. Other investors include JSC International Investment Fund, Get Ride, and Beijing Minghong.
Navigating the Public Markets
WeRide's move comes at a time when VCs are becoming more cautious about investing in autonomous vehicle companies. If WeRide aims to scale and compete effectively, accessing the public markets is crucial. The company is seeking to raise additional funds through a private placement.
Global Expansion and Technological Advancements
WeRide holds permits to operate autonomously in various locations, including China, the UAE, and Singapore. The company is actively testing its technology in San Jose, California, and is developing a diverse range of autonomous vehicles, including robotaxis, robobuses, robovans, and robosweepers.
Financial Performance and Future Plans
WeRide's revenue for the first six months of 2024 was $20.7 million, slightly lower than the previous year's revenue. Despite facing losses, the company plans to invest 35% of the IPO proceeds in R&D, 30% in commercialization and operations, 25% in capital expenditures, and 10% in general corporate purposes.
Competition in the Autonomous Vehicle Landscape
WeRide is not alone in its pursuit of the US market. Its competitor, Pony.ai, is also preparing for a US IPO. However, Pony.ai faced setbacks in 2021 due to uncertainties surrounding Chinese firms going public on foreign exchanges.
Key Takeaways
WeRide's ambitious IPO plans indicate the company's confidence in its technology and its ability to navigate the evolving landscape of autonomous vehicles. The company's global expansion, diverse product portfolio, and commitment to technological advancements are key factors in its pursuit of success.
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